"We are always preparing for the next hardware," Iwata said. "We are under development. ... But the hardware is a kind of box that consumers reluctantly buy in order to play our games." Well, we wouldn't say reluctantly, because most people seem to be more than happy to pick up a Wii.
In terms of future specs, Iwata commented that every new piece of hardware "needs some revolutionary features." He also added that "This time around, it happened to be we had a revolutionary user interface. Will it be the same for the next generation? I really can't tell." Considering what the company did with the Wii, we're totally expecting bigger and better things from Nintendo.
President Iwata also went on to comment about how hard it is for them to innovate beyond what they've done this generation. "It's natural for the current customer to expect Nintendo is going to once again do something different. If the people are expecting so many different things from Nintendo, it's going to be difficult for us to go beyond that expectation again."