Yet another Wii 2 Rumor. Codename 'Project Café'

[Gamerace]

This sounds like not so much of a reaction to anything MS/Sony has/is/will do, as a direct frontal attack against anything Apple might bring.  That sounds erriely like what I would have expected Apple to bring to home consoles - basically games played on your TV but controlled with your ipod/iphone/ipad.