They will do, but at the moment they don't need to. The Wii is still the best selling console so why spend more money at the moment in getting out another console when the Wii is doing so well. Graphics? Yes good graphics are good for a game but not everything as the Wii is proving. I think they'll already be in some talks of the next console but it won't be out for a while yet.
In my opinion, I think they will wait for the next system instead of offering a newer HD version, so as not to make current owners feel like they have to buy the same system twice. I know they do it with portables, but this would be such an overhaul they would be better off waiting. Then they can make a whole new system.
