Nintendo Planning New Console Announcement at E3: Report
It's unclear just how good those HD graphics will be, however. In order to compete, we'd expect them to be at least as good as on the PS3 or Xbox 360, but GI said that it's possible that the graphics could still fall short of those other consoles'.
In fact, the Nintendo Wii still managed to gain the top market share among the current generation of video consoles, despite underwhelming gamers when its hardware specs were compared against those of the PS3 Sony and Microsoft Xbox 360. However, its innovative Wiimote controller worked heavily in its favor, and it had plenty of what is needed in a gaming system: fun.
On the other hand, Microsoft and Sony haven't been sitting around. While they have not released new consoles themselves, they did release the PlayStation Move and Microsoft Kinect, which brought motion-based control to their consoles, too. The Kinect, in addition, has been a hit among those who took it and used it to control all manner of different things, aside from the Xbox 360.
E3 2011 (the Electronic Entertainment Expo) will be held June 7 - 9 in Los Angeles at the LA Convention Center. Assuming the source is right, we'll find out much more then.