As rumours of the next Nintendo home console fly thick and fast through the Mario-esque pipes of the internet, certain goombahs of information are emerging, some carrying with them believable 1UP mushrooms of evidence (okay enough with the word play).
The Kyoto Report
, a Ninty fansite, claim to have evidence the Nintendo Technology Development team based in Seattle (at Nintendo of America) have been looking into "tracking systems and head-mounted stereoscopic displays along with CPU and GPU research and evaluation", as part of development for the new console. Moreover, they also claim Nintendo scored big, employing "one of the head engineers responsible for the PS3's Cell CPU and RSX GPU".
Take from all of this what you will, but it sounds more and more like Nintendo have
to deliver the goods this E3, just out of respect for the rampant rumour mill.