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Next from Nintendo:

-At least double the power of the PS3
-Something like 2GB RAM, using GDDR5.
-Also, put in some quad-core PowerPC (or Intel?) at around 5 Ghz (using less than 45nm of course).
-Don't forget a GPU in the lines of a R700 from ATI, but not as fast compared to the PC version (to keep heat low, small form factor)... and less than 45nm build.
-Wi-Fi obviously, multi-card reader, maybe HD-DVD or Blu-ray but no movie playback.
-Also, solid state hard drive... not too big, but big enough.
-User-created content and games for free to download, now support for Dreamcast, PS2, Xbox and GC games for download on VC.
-Now the best part, the controller. It's gonna be a BIG evolution from the Wiimote... so BIG and innovative that I can't think something that BIG and innovative to put it in here.