"It would be nice if Nintendo catered for the core games, thats when they were at their best. (SNES)"

Realy now?
http://www.youtube.com/watc...
Nintendo is still giving us the same (and more) games they have always given us.

"I think the damage has already been done though, Nintendo are now looked upon as the 'casual' of the 3 companies."

If you look at the kind of people who think that, you'll see they are noobs to gaming. They don't think Mario is "core", they think a shooter with checkpoints every 5 seconds is.

"Of course catering for the kids, like they did for the Wii will continue."

Your right, it will continue. Like it has since the very start.
http://www.youtube.com/watc...
http://www.youtube.com/watc...
http://www.youtube.com/watc...
http://www.youtube.com/watc...
Ask yourself, does this look like something that isn't for kids?
................ Sooooo yeeaahh.

"Catering for as much of the market as possible (both casual and core gamers) will give the Wii:U a better chance at being a strong seller, for a lot longer.

To be honest, it will be interesting to see how well core games sell on the platform, considering the 'casual' image Nintendo has drowned itself in."

Nintendo already did that with the Wii, the problem was that no one wanted to talk about the "core" Wii games (I can waste my time with list but no one will read it). They would rather talk about only Wii play, Wii music and Wii party. Thus making an ignorant misconception on a massive scale.

Wrong, it is not an image Nintendo has drowned itself in. It's an image gamers that started gaming this gen have.

"I think the majority would look at the 360 or PS3 for that."

Oh I believe you, really I do. /Not Sarcasm
The majority prove it with sales of games like COD.7_7

and you need to remember this all comes down to share holders and stock. if the owners give the word, Sony and MS have to release their PS4 and Nextbox(720 sounds stupid) so expect to see one other console in 2012.
Sony and MS are working on consoles now they both admitted it. So i doubt either of them will have current 2012 PC specs unless they change at the last minute.

Again it comes down to shareholders. Why did Sony and MS knock motion then both come out with motion? Because shareholders saw Nintendo making money and probably got pissed and told them to get out there and make motion so that money could be theirs.
Everything makes more sense when you look at it that way. Kinect is barely functional, but MS had to release it or their shareholders would have been pissed because PS3 would have outsold them by now without it.

So again In say even if for some reason Wii U isn't stronger than PS3 (though i believe it is and then some) both of the other 2 will release a console to combat it in 2012 or early 2013. I doubt there shareholders want to miss out on all that new money

if they generate enough buzz at E3, they could very well sell good for the holiday. If I'm not mistaking both DS and 3DS only had one E3 before they launched.

So they are probably getting pushed to show something at next E3 or sooner as we speak...erm type... and then to release to counter Wii U. Keep in mind 360 launched in 2005 and if anything their shareholders know how a one or let alone two year headstart can help, so they are probably getting pushed to make theirs available by 2012 holidays. I doubt MS want to bank on their console being a Wii like success, and coming up and beating a console year early than them in sales.

you're totally Right