Sources at EDGE magazine recently confirmed that third-party studios such as Activision, EA and Ubisoft have had access to “Wii 2” development kits for months, meaning a release may not be very far off.

The sources also claim that the new console may very well not sport the Wii name at all, but that Nintendo is going to rebrand it entirely. At the moment Nintendo is following Sony's example of strange code names, with insiders saying that the project is known internally as 'Project Cafe'.

The system will of course support improved motion control capabilities which are apparently, “better than Move”, referring to the PlayStation 3’s motion controller. The console will also have more powerful specs than the existing PlayStation 3 or Xbox 360 and may support the Blu-ray disc format.

One of the most intriguing disclosures has centred around the rumoured built-in HD displays on the new controllers themselves though, with IGN recently disclosing new details gained from so-called “industry sources”.

According to them, the new controller will combine a dual-analog design with an integrated touch-screen display. This means the original Wii's signature wand controller is probably not going to be making a return, but instead we'll be seeing something completely new.

The site alleges that the controller will feature a 6” touch-screen display, support HD resolutions, and be able to stream full games between the console and the controller. Presumably utilising wireless technology in conjunction with Bluetooth, the controller could enable gamers to play games without their TV at all, with their controllers functioning as handhelds tethered to the console's wireless.

None of these details have been confirmed by Nintendo, so take everything you read with a grain of salt. As far as widespread industry rumours go though, at least some of these features should make their way into the new console. Here's to hoping Nintendo reveals more information at E3 this June. In the meantime though you can view a mock-up of the rumoured controller over at IGN.