I could definately see them add a camera into the pad... maybe their big idea with this generation is 'Augmented Reality' especially having seen the built in features of the 3DS.

Please be fake.

Having enough controllers already costs more than the console itself.

this would be the worst idea ever.

The camera built into the controller thing sounds pretty interesting to me though... maybe devs could use it to track your facial expressions and as a result use them to impact games in some way. But, overall the controllers for this thing are sounding too expensive to me

ar is mostly done with an outward facing camera, if the camera is mounted to face the user then im not really sure how ar would work in that situation... although it may have a dual cam setup i guess ( one facing outward and one facing the user )

Maybe could be used for head-tracking.

And now I want to play something using stereoscopic 3D coupled with head tracking :(

It could be a swivel camera, besides it says "front facing camera" atleast for me that means outward. 

Nintendo have started aiming for a killer app feature each generation, this generation I think Augmented Reality is going to be their big 'WOW' thing or atleast a big part of their strategy... if it is it will likely be a big disappointment for them sales wise.

you can experience that right now, just pick up gran turismo 5

true but we'll have to wait till E3 ( or some more leaks ) to be sure on what nintendos strategy is

Don't have a 3D tv. I was thinking more pc-ey :P