Squilliam said:
You do realise than the countless reasons for the Wii being the size it is, are going to be just as important in the next generation? They were targeting a specific size/shape and since they've been so successful I believe they will target it again. The reason why I suspect the Wii HD won't be quite as powerful is because the Xbox 360/PS3 were that far ahead of the power curve over last generation and they produced far more heat. Heat and power consumption are not going down as fast as chipsizes are.
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The Wii HD may also need to be a small low energy consumption system, but there is nothing saying it has to be as small as the Wii or as low in energy use and there are ways to keep it (about) the same size while increasing energy consumption without running into heat problems.
Consider that a laptop DVD drive is less than half the thickness of a regular DVD drive, and if you chose to use a laptop drive in the Wii HD you could greatly increase the airflow around the CPU and GPU which should enable you to run using warmer components; if you combined that with more active cooling you could run even warmer components without any concern for overheating.
Being that it is likely that you will see slim-line XBox 360/PS3 systems late 2009/early 2010 as they move to the 32nm process which will not be much larger than a Wii, and Nintendo has used the exact same companies to design their console as Microsoft has, why wouldn't Nintendo be able to surpass that feat in 2012 using a 22nm process?