I posted this on the Console Union board, and figured I'd stick it here too. I could see such a creature coming out in a few years at the latest - before the next generation really starts, ideally. Again, they'd be aiming at the mass-market versus the core market... if anything it'd be the "game machine as an appliance" vibe I get from the Wii. Simple, to the point, does its thing very well, etc. Sort of like an iPod.

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I don't think Nintendo will want to directly compete with Sony or Microsoft, so they did make a "WiiHD"? I'd expect it to be backwards compatible, have similar power to the 360 and likely use dual-layer DVD's like the 360. They might opt for flash storage (SD cards and the like), even.

Now, if they were clever-ish and got their butts working, I'd like to see them come up with a real online plan of some sort. Not necessarily for gaming but for social networking/interacting andcloud storage. They could keep the internal storage relatively minimal and then have games connect online, saving progress, achievements (they need to implement something like that, methinks), settings, etc. Maybe have a synergy with the DS/DSi and the WiiHD.

I don't see them going for Blu-Ray at the moment due to costs, and Nintendo has never seemed interested in subsidizing hardware. Having Blu-Ray would jack the costs up pretty high, and they would need to keep prices on the lower side. The existing Wii tech they can bring over (ie, the controllers, balance board, etc) are fine as is, helps maintain the value of the current system and accessories (always good for retailers and consumers who have bought in).

I think that a Wii HD should be $199 (no game) and no more. I think Nintendo could do it right now if they wanted, but I don't think they want to. The Wii is still selling too well - no sense cutting its life short.

If they could put both versions of a game on a single disc that would be great. Blitz Games did that with the Burger King XB/360 games. HD-DVD had that as part of the spec. Blu-Ray can (finally) do that. I think that would be a definite advantage - buy a game today for your Wii and know that it'll work on the Wii HD (complete with the better graphics, additional features and such). Would ease the transition, and I think help prevent players/owners from migrating to other systems since they're effectively "bought in" to not only one system but two.

Dreaming here, mind you. Totally dreaming.