A new HD console may indeed be in the works if the claims of "multiple sources" can be believed. According to Game Informer, Nintendo's been working on a console "capable of running games at HD resolutions." It's still up in the air if they'll be comparable, worst, or even better than what the PS3 and XBox 360 are capable of.
Nintendo are already showing the console to publishers in an attempt to garner interest, details are scarce, but Nintendo may just make a move as early as this E3. The console is reportedly scheduled for a late 2012 release.
With Nintendo already showing publishers the system, it appears that they hope to rectify the poor relationships they've had with third party developers. Nintendo boss Satoru Iwata himself admitted that "[Nintendo] need to decrease the concern that only Nintendo software can sell well on Nintendo platforms and third-party software cannot sell in the same volume. We feel a need to have closer ties with our third-party developers from the beginning."
Details are scarce on how the system will actually work and what kind of control set-up it would have, although it's safe to assume it'll have both traditional and motion control thrown into the mix.
An anonymous source also added: "Nintendo is doing this one right. [It's] not a gimmick like the Wii."
Nintendo themselves refuse to comment on the issue.
Well then, it'll be an interesting E3 to say the least.
Source: Game Informer