The rumours surrounding the much elusive Wii 2 keeps getting better. Reports suggest that Nintendo is indeed set to reveal the new HD system at E3 and that it is being referred to as "Project Cafe."
The new system is said to be slightly more powerful than the Xbox 360 and uses a custom IBM PowerPC CPU with three cores, a GPU from the ATI R700 family, and at least 512MB of RAM.
Sources also talk in detail about the new controller for the system, it has a six inch touch screen as well as a front-facing camera, D-pad, two bumpers, two triggers and maybe even more. Apparently, it can also double as a Wii sensor bar.
More importantly, Project Cafe will also have backwards compatibility for Wii and GameCube titles.
The new system is pegged for a late 2012 release.