Nintendo's pretty savvy when it comes to making money. If I remember correctly they've never sold a console at a loss, which is a stark contrast to their competitors. Plus the system specs aren't that outlandish if you think about it. Something a little more powerful than a PS3? Not only do PS3/360 games still look good, but the technology to surpass them is rather cheap compared to five-six years ago.
On the other hand, the controller will probably eat into those cost savings, since it sounds like it'll be crammed with technology. Not that I mind, I just hope they go for something a little more traditional. None of the current gen controllers are overly cheap anyway.
That said, Nintendo almost needs to refocus on better graphics/audio for their next console. The Wii has aged too much, and the PS3/360 still have a few years of life left. Combined with slowing sales, it's easy to see that the marketing and the Wiimote just aren't a big enough draw anymore, and the library is saturated with "casual" games. The lack of good third party support is once again creating a drought like it did with the N64 and Gamecube, which isn't good for their "ocean" philosophy of expanding the market. Hardcores are turned off by Nintendo these days and the casual market is tapped out. Plus, Sony and MS have both made great strides in catching up to Nintendo's casual gaming niche and both offer superior online services.
In any case, I'm sure whatever they do, it'll print money.
