Nintendo has confirmed that it is working on a new console and successor to the Nintendo Wii, which is set for release in 2012.

The confirmation comes in a note that accompanies Nintendo's 2011 financial statement, which reveals that the company is working on a new home console, codenamed Project Cafe.

Nintendo has not confirmed any specific features or details about Project Cafe, merely that it intends to launch the product at some point next year.

However, there are rumours that Nintendo's next console will be a far more powerful machine than the Wii, possibly rivalling the PlayStation 3 and Xbox 360 in terms of power and praphical grunt. HD video, as well as a controller with an embedded 6.2 inch touch-screen are also rumoured to feature as part of Project Cafe. Nintendo has issued no response to any of these claims, however.

Nintendo has said that it will have a playable model on show at E3 2011 in June, where more details will be released about Project Cafe.

Let us know your thoughts in the forums.

UPDATE: Possible system specifications for Project Cafe have been leaked online.
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