The company plans to showcase the new console at E3 in Los Angeles in June, but no precise launch date has been set. Punters believe the launch should take place sometime in the first half of the year.
The console, dubbed Stream, Project Café or just Wii 2, is said to feature a faster IBM PowerPC processor, AMD HD 4770-derived graphics and an innovative controllers with built in touchscreens.
At this point it is unclear what Nintendo plans to do with its best selling Wii once the successor is introduced. The Wii has already seen a small price cut last week and if Nintendo chooses to keep it on sale next year it might end up the biggest bargain in the gaming industry.