I really can't believe any of these rumors...but if they are true. I think I understand what Nintendo did with the Wii more now.
Nintendo used the Wii to disrupt the market...but also used it as a temporary system. HD gaming was not quite ready for prime time, and Nintendo knew that...so they waited.
Now, we have cheaper hardware that can produce HD games and more consumers with HD televisions and fast broadband internet. It is the perfect time to launch an HD system.
I think Nintendo is launching a system that they hope will be powerful enough to last much longer on the market than other systems. A gaming hub that will be the center of your gaming universe...but a controller that can evolve and be more than a controller. Could Nintendo be launching a system they think can be on the market for 6-8 years without need for a successor? A new system that is basically a Wii, and next generation system? If that is Nitnendo's big plan, I think it might work and $400.00 for that system will be nothing, if they come prepared to deliver oon the experience.