Nintendo developing HD console, may debut at E3

Nintendo is said to be preparing a new console for a late 2012 launch in a bit to regain the momentum it had with the Wii console, gaming news site Game Informer reported Friday. Sources said that the company plans to unveil the system at the E3 gaming conference in June of this year if not sooner.

The next generation console would be able to play games in high definition, although it was not clear whether Nintendo plans to simply match its competitors or try to surpass them. Either way, the move looks aimed at regaining ground it has lost as of late due to the Wii's limitations.

Nintendo found itself in the top spot among current generation gaming consoles for much of its early life, surprising many in the industry. While the graphical power of the Wii was certainly lacking, the motion-sensing functionality of the platform attracted a large subset of consumers, even those who might not typically be considered "gamers."

Both Sony and Microsoft took notice of this, releasing their own motion sensing systems last year. Sony released the PlayStation Move in September, and Microsoft the Kinect in November. With a much better gaming experience overall -- especially when it comes to graphics -- Nintendo found itself leapfrogged.

In an effort to ensure that development for the new console hits the ground running at launch, Nintendo is reportedly already showing it off to developers so that they may begin developing titles for it. The company has been oft criticized for poor relations with game makers, and it appears to be attempting to fix this problem.

Another sign that a new console could be on the way? Price cuts. Engadget's Sean Hollister reported earlier this week that sources told him the original Wii would drop to $150 on May 15.

Nintendo declined to comment on the reports.