HD Wii Successor in 2011?

Industry veteran John Davison has published a report stating that Nintendo is working on a successor to its current generation home console, dubbed the "Wii HD". This more powerful system is currently in the early stages of development and is not expected until 2011. While in the past, Nintendo has shied away from directly challenging competitors on horsepower, the Wii HD will be a formidable device, which sources are calling the "true next generation" Nintendo console.

The device will reportedly retain the Wii brand, while massively updating the core hardware to usher in HD visuals and other frills. The sources promise that digital distribution and backwards compatibility will remain key areas of focus for Nintendo, while an on-board storage solution may also be planned. Innovative controls will once again be at the center of the development vision, although Davison did not speculate on what this control scheme may look like (By 2011, we wouldn't be surprised to see some sort of head-tracking VR system -- don't let us down, Nintendo).

While Davison's sources are unnamed, there is undoubtedly some truth to this rumor. Nintendo is not a company to rest on its laurels, and as the recent DS revision shows, they are not afraid to introduce new hardware ideas even when they appear to be on top. Furthermore, Nintendo spent a whopping $370 million dollars on research in 2007, more than double the budget fromt the year before, and more than they spent on development for the Wii. Those figures would suggest that something big is in the works, possibly involving chip partners IBM and AMD.

[Source: What They Play]