Rumors have it that a next generation Wii (Wii 2 or Wii HD) is currently in the works which is targeted for release in 2011. Allegedly, it will be based on the original Wii architecture but it will have high definition graphics of 720p or 1080p. It will also have more storage compared to measly capabilities of the current model.
While the Wii has won the console wars with more sales and consumers still having difficulty buying them off the shelves due to shortage, it is still a known fact that hardcore gamers still prefer the Xbox 360 and the PS3. The Wii is still no match to the quality of the other 2 consoles. The selling point of the Wii is that it revolves around family-oriented games — games that the entire family will enjoy playing together.
Upping their specs a notch higher to match the 2 other consoles could make them eventually edge out Sony and Microsoft in the console market. Well, 2011 is still a long way and while Wii is trying to catch up, there is no doubt that Sony and Microsoft are also making headway on their own. By the time Nintendo matches the quality of both consoles, these 2 may already be miles away again with the specs of their own console development.