Details are sketchy at best but preliminary reports indicate that this will indeed be a fully HD system, set to possibly even give the PS3 and 360 a run for their collective money... again. Also, while some reports are saying it will be backward compatible to the Wii, the primary focus of this console will be to grasp the "core demographic" once again. One leak has stated that the controller, as of now, features two analog sticks and a built in LED screen, which could possibly be a touch screen.
The code name for the project is "Cafe" which is odd, but hey, does anyone else remember the "Dolphin"? If I had to make a wild guess, which of course I will, I would say that "Cafe" is a good indicator that this system will be more focused on the social side. Nintendo has had issues with this before, the Wii was a bit of a disaster online, but the 3DS is certainly moving toward a social market and appeal. In addition, there will almost assuredly be 3DS interconnectivity.
Now that you have all the facts allow me to gush about how awesome this move is on Nintendo's part (please note I am in no way, shape, or form a Nintendo fanboy).
The Wii was a powerful force that took many by surprise. It was accessible but not to the point of alienating its core fans too much. While I do think the motion controls were gimmicky, it still managed to put out a fairly solid library of games, mountains of shovel ware excluded. Simply put, the Wii managed to put Nintendo in a very good position financially. You have to remember, Microsoft and Sony took a huge hit to the wallet the first several years of production while Nintendo was making a profit.
Now it is about 5 years later, the "average" cycle for a system, and Nintendo is ready to launch a new one... but where is the competition? Sony and Microsoft are both trying to stretch out the life of their respective systems for another 3, 4 or possibly even 5 years. That's why they introduced the Move and Kinect. That means Nintendo is going to be first to the market with a shiny new toy, and be the best on the market to beat.
Simply put, Nintendo is poised to dominate once again; core demographic, casual, social. Word is that Nintendo is already showing the build to third party developers, which could even mean a solid launch with good titles. Granted this is all just conjecture at this point. but the big N always seems to be a step ahead lately. There is a small, and I mean minute chance, that this system could go the way of the Dreamcast. There could be a gap in development between the established 360/PS3 crowd and developers might not be willing to take a chance on it. That said, however, this is a Nintendo console, so the majority of "must have" titles will be first party.
I don't know what will happen come 2012, but what I do know is that I am darn excited for E3 this year... maybe I'll try to get a press pass. I'm sure they wouldn't mind giving full press access to a nerd with a blog!