Intel is rumored to be in talks with Nintendo for a possible next generation partnership.
Japanese technology Impress Watch writer Hiroshige Goto has written an article speculates that chip maker Intel is in talks with Nintendo to form a partnership for their next generation console.
According to Goto, Intel is trying to convince Nintendo to use their latest graphics processor, Larrabee, in the Wii's successor. Based on the timing of the talks, the chip would have to be used in their next console rather than the rumored Wii HD system (said to be coming in 2010).
Goto, however, doesn't provide any more information about the talks, explaining that the Larrabee's push for technology might conflict with Nintendo's more conservative approach. There are a number of problems with Nintendo using Larrabee from power consumption to cost to architecture compatibility.
Larrabee was cancelled as a discrete product earlier in the month. While they are still working on the technology, it is at this point very far behind their competition at ATI and Nvidia.