What They Play are reporting that Nintendo has been showing off a prototype next generation Wii. Details are pretty sketchy, but HD graphics are pretty much guaranteed along with advancements in controller technology. There will also be a new emphasis on downloadable and backwards compatible content, so expect more internal storage. We know that Nintendo has been working on an addon for the WiiMote that adds high performance gyroscopes.

What I found most interesting was the increase in Nintendo's R&D spending, which has tripled since the release of the Wii. Given what they achieved with the Wii, what will they be able to achieve with three times the research.

2011 is a while off, but I'm already getting pretty excited. I think two to three years is a good amount of time for waiting to release the Wii HD. Sales of the Wii are still massive, and I can image that people won't be wanting to upgrade for a while. Release too soon and you just piss off the buyers of your existing product.