I'm not sure how much smaller Nintendo could make the Wii.
It's limited by the fact that you have to have a DVD-reader in it. Besides, I feel that nintendo is comfortable with the Wii just as it is now. It's severely outselling the 360, which is now possible to buy cheaper than a Wii.
So if there are no real possibilities of making it much smaller, and there are no real incentives to lower the price, I don't see how a redesigned Wii could be of much use to Nintendo.
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