That Nintendo's hardware developers are already working on the next generation of the Nintendo Wii is for certain. The Times Online has a report triggered by a statement of Nintendo's President Satoru Iwata. He said: "The hardware team started work on the next thing as soon as they were done with their previous project, but what they think up doesn't necessarily become a product."
Speculations on what Nintendo would release as a Wii 2 are manifold. Nintendo could just release a Wii with more CPU power that is able to handle media and games at higher resolution or they could just break the rules again and deliver something outlandish like a body-suit or brain interface.