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I think Nintendo could get the HD-DVD technology cheap from Toshiba, and it would curve piracy issues. I don't think they're too interested if their system plays BR movies or not. It's not their department.

I already mentioned this in another thread, but I'm still thinking of a powerglove-type setup with gyroscopes in the fingers, and the game can be controlled via hand gestures.

Of course it will have Bluetooth, so the Wii controllers could also work.