I do remember Myamoto speaking of wishing to implement a console that did not require a TV. So I think the next console could use some sort of projector. And to take it one step further, maybe you will be able to interact and manipulate the images, sort of like Natal, but more involved and interactive, and not necessarily full body motion. Maybe a camera that tracks head movement and looks around when you move your head and built in voice recognition. Maybe there will be an option to project games on the ground and you can interact with them on a table or your floor.
For the controller, it could be sort of a new and improved power glove (one that's far more slick, easy to use, and actually works properly) that maybe you just fit on two or three fingers, like a Minority Report type of thing, with vibration feedback and 3-D motion control. I doubt Nintendo would have the tech to make true holograph just yet, but maybe something close to it, where they can make the projected images look 3-D somehow, without the use of glasses.
I'm probably thinking way too out there with this but with Nintendo who knows, the possibilities are endless :)
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