It's a physical product they're working on, Round Eye. But I think they'll be doing that too, since they pulled back Pikmin II, and as it's been pointed out, they've been very quiet about announcing new games in the past few months.
I'm surprised it's specificially not a new GB, because I thought it might be the next GB integrating that new screen developed by Sharp, the type that can fake up to a meter of depth? Wouldn't that kick for a portable system? It would make the most sense to develop it into a new GBA, but knowing Nintendo, they'll build it into a seperate product no one will want. All well.
The thing that bugs me most is that they're saying it's likely Super Mario 128 (not that 100's Marios thing, it's obvious the two projects having the same name is coincidence, because of the way a working title is typically assigned), a game that was supposedly in the works simultaneously with Sunshine (that's what they _said_, anyway), that people were expecting last E3, may not even show up until 2005? Give me a bloody BREAK. OK, Miyamoto or whomever's got this revolutionary idea (didn't we hear about that last time for Sunshine? It was such a big deal, they couldn't show off the water pack's hover feature...), what was to be Mario 128 can't or won't be completed until the new system. Fine. They can make SOMETHING for the meantime. Just a filler title, something gamers might find enjoyable, that still keeps Mario in people's minds. It could be as simple as making a 2.5D platformer, quite a lot like Melee. Some old school level designs and tricks, some nice graphics, decent music, it wouldn't be _the_ hit, but it'd probably do decent business, and fans would be complaining a LOT less. They could do up a project like that with a moderately small staff (heck, chuck it on to HAL, I _love_ how they handled SMB, versus how NCL's handled them lately), eight to ten months, they'd have it in time for 2004 Christmas. And it wouldn't spoil people's appetites for the next "huge" Mario game, since that wouldn't show up until mid-2005 at the earliest.