Turns out that the Zelda devs have a lot of ground to make up.

Should be interesting....

This is very old. I remember someone from Ninty stating the very same thing months ago.
It still makes me smile though, because I'm pretty sure Nintendo can match, if not top, Monster Hunter Tri.
I'd like Zelda Wii to look that nice :3

What is interesting about it?

Iwata says it how it is, and Nintendo has to step their game up. They are letting other companies make better games than they are. It is a shame that for the exception of Mario Galaxy, most games don't push the Wii graphics to the limit.

Whats interesting is just what they're gonna do to blow Capcom out of the water....

Sales have shown that already Monster Hunter 3, unless it gets a huge marketing push from Nintendo, is going to sell like shit. Nintendo is the one printing money.

I don't think Capcom is too worried about sales in the West since it absolutely exploded in Japan.

Concerning the graphics though, this is good. Nintendo needs a challenge, otherwise they'll never progress. Monster Hunter Tri (if the demo is any indication) does look very nice, but has inconsistencies. Weird clipping issues with weapons and characters, and poor water realism, etc. I suppose these aren't necessarily graphics, but are related to the presentation. If the next Zelda surpasses Monster Hunter in terms of graphics, scope, and attention to detail, I'm confident that Link's adventure will be an exciting one to experience.

Yeah, and people are paying to play it here still too.

No one thinks this is a advertising thing for Monster Hunter? They were pushing it quite strong in the US by my understanding.

They are pushing it strong, problem is that will it affect sales? Monster Hunter is a game that caters to a niche market.

Extremely niche, unfortunately. Think MadWorld.

It is online multiplayer, there is more chance of word of mouth than Madworld at least. And more Nintendo backing.