its called the super wii.

Shouldn't all the console manufacturers already be working on R&D for their next consoles? It doesn't mean they'll come out in less than 4 years, but I'd assume they're all working on crap already. I always thought everybody started planning the next console the second their latest went on sale.

Must have been a slow rumour week for game informer, all console makers start planning their next console as soon as one is out the door.

They started planning for the Wii as soon as the Gamecube was released. It's simple strategy. You don't wanna be caught with your pants down with only 1 year to plan your whole console and execute your idea. You'd end up like PS3.

My hunch is we'll see a WiiHD in the future, and it'll be treated as the same piece of hardware as the Wii in the same way as the GB and GBC. Basically, I've been expecting Nintendo to push hardware development harder than in the past to go an iPod-like route, and a system that is for all intents and purposes the same unit as its predecessor with a few added features that can just be not used for users unwilling to upgrade makes perfect sense when you've built a brandname up like Nintendo has with the Wii.

Of course all of them are already working on the next console.
When the time is prime, they'll pick from the list of R&D on which functionalities are to be included.
The first cap is probably the retail price where they'd have to cut down on the choices to meet that price.

Timing has to be right, too, depending on which tech is to be included.

Wii, for example, would have cost a lot more if it were to come with HD. While, at the time, HD was probably under 5% WW.

Okay, I'll shut up now. It's just logical business steps.

yes just like mircosoft is developing the xbox720
and sony the ps4

they always start building the new one when the "current console" is released

I reckon Sega is building the new Game Gear also but with the move in Japan moving to Casual games I think they'll be calling it the "Casual Clobber"

Remember that the motion control for the Wii was developed long before the GC was released (maybe even before N64) but at the time it was considered far too expensive for the mass market - Nintendo didn't want another power glove or virtual boy on their hands.
I suspect Nintendo will release a backwards compatible Wii2 fairly early next cycle but continue support for the Wii so they don't lose 3rd party confidence like Sega did with the Saturn.
As for using HD-VMD - why would they do that? That optical format is about as useful as UMD.

Two things ...

1) Nintendo is obviously working on their next console ... These are amazingly complicated pieces of hardware, typically with large libraries of code, and have to be 'ready' for developers 18 to 24 months before the system launches.

2) A Wii HD may exist, but it is likely that it would (essentially) just render Wii games at a higher resolution like the XBox 360 does for XBox games (or is possible on PC games if you buy a better graphics card); the hardware changes to make this possible are pretty inexpensive and Nintendo would probably just be waiting for supply to exceed demand, and for the 65nm process to be complete before bothering with this.