Here is what I would like to see in the Wii 2.0 - due for release around Xmax 2010:
- 2.0Ghz CPU
- new "Raycasting" GPU tech (completely new gfx solution, non-poly based), running up to 720p. Supports native shadowing, lighting, complex models, etc... (***)
- advanced Wiimote (includes camera slot, mic, etc..), better position detection
- 256MB RAM
- built-in "Millipede" storage (*)
- cartridge slot (**)
- form factor about 1/4th current Wii size
Launch price: $199US (with game)
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* - a Millipede drive will provide an immense amount of on-board storage (1TB up). No idea if the tech will be ready by 2010, and commercially available - but if so, it would be cool. If not possible, a fast USB/memory card slot allowing for large (expandable) quantities of on-board memory.
http://researchweb.watson.ibm.com/journal/rd/443/vettiger.html
** - no CD based drive. Removal of the drive will result in a much smaller/simpler unit, higher xfer rates, lower power consumption, improved reliability - and a much, much lower cost. By using a cartridge, they have direct access to all of the data on the card - giving it an effective memory space of gigabytes. By 2010, cheap cartridge media should reach the 10GB (or higher) range.
*** - love to see Ninty experiment with new gfx technologies. Even though resolutions have improved, image quality is not even close to 'TV' level. Whether some form of 'line-rendering, hardware raycasting' is feasible - I don't know. It may even be unnecessary, or dumb from a business point of view (make it hard for companies to port existing next-gen games to the platform).
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I know one thing for sure. This "lag" business model is a great idea. When the Wii 2.0 comes out, there will be a compelling business reason for companies to port 360/PS3 titles to the new console (just the same way PS2 games are being ported to the Wii now).