I don't really see Nintendo/Intel making that much sense since Nintendo doesn't tend to use cutting edge hardware so they can keep costs low.
AMD is a much better match for Nintendo in a lot of ways. They produce reasonable performance on the cheap. Nintendo doesn't want a cutting edge chip to beat the competition on graphics, that proved to be a losing battle on the Gamecube (keeping up with the joneses graphics wise). Instead look for a cheap processor and graphics card that puts the Wii at PS3ish graphics by 2012 for under 300 dollars on release yet again.
Also the Wii isn't helped by X86 much since Nintendo like Sony, Apple and everyone who isn't Microsoft doesn't use direct X. Direct X is why X86 is different then other kinds of programing for the Xbox and the PC since direct X has a lot of X86 contingencies built in. If you use Open GL it matters far less what processor you use and so companies are free to go for the most cost effective option.
Open GL programming on a cheap AMD integrated platform for low total cost.
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