It's still designed for the low power, embedded chip market which really isn't necessary on a home console.

"Approximately 15% of the sequential increase [in quarterly sales] was due to the initial production revenue from our ARMADA application processors, primarily as a result of a major customer preparing to launch a new gaming platform,"

Does that sound like Nintendo's next home console to you?  Doesn't to me unless Nintendo plans to hold onto the chips for a year or two before actual production.

PSP2, AppleTV, GoogleTV, etc....makes much more sense.   Given the direction of the chip being an embedded SOC with a focus on multimedia.

I suspect Nintendo will opt for a low clocked IBM Power6 or 4 core Power7 chiip for their next home console.

How powerfull this chip is ?

And why exactly do we belive it's for console ? Maybe it's some kind of nettop computer or notebook running android ? Or maybe some tablet like device ?

Heck, anybody could potentially be the customer for this (MS, Sony, Apple, Sega, etc).  But since it's believed they are the chip supplier for the 3DS it's logical to assume they might also be tapped for the Wii2.   Clearly this is speculation.

Actually multi core processors are a very smart way to save battery power and improve the horse power at the same time. This why Intel has discontinued the Pentium 4 in notebooks to develop multi core processors with low clock based on the Pentium 3 architecture (they called it Pentium M). But there is a huge  problem: we (the developers) still don't know how to develop efficient code for a multi core environment and this is why the PS3, after 4 years in the market, can't have its hardware fully used in a single game (even if it is a exclusive one).

My money's on it launching almost exactly 1 year after 3DS at this point. Nintendo will want 3DS' first holiday season to be free and clear, and they can position certain products to prop Wii up for its last season (Last Story in the West, Dragon Quest X in the East, Skyward Sword for both)

It certainly intrigues, if it's true, I hope it's powerful, and I hope it's released sooner than later!

Interesting as Wii sales fall, rumors on it's sucessor appear.

A new console in 2011 is too close too 3DS

Since the GPU is extremely likely to be AMD (has been last three times and there's only two options for console graphics), I was hoping for some sort of Fusion (AMD CPU and GPU on one die) which would save a lot of money (MS and Sony did this on their consoles later on).

Abandoning POWER used in GC and Wii's CPU means that Wii 2 will be harder to transition to for third parties. It better be worth it to get the quad-core ARM. Though power efficiency will be extremely good as a result, probably less than the Wii.

Nintendo never design for performance, it's always for cost.

Wii 2 confirmed, get ready to the  future!