Sales of the Nintendo Wii have dropped significantly certainly leaving the suits over at Nintendo scrambling to find ways to get sales back to where they used to be. One of the ways to get new sales would be to introduce a new game console. The current Wii has been around for a long time now after all.
A new rumor has surfaced that has Nintendo and Intel in talks for hardware to power a new game console. The speculation is that Nintendo and Intel may be talking about a GPU/CPU combination for a new console along the lines of Larrabee.
All of this is pure speculation, but Intel may well end up powering the console that carries the Zii name. A new console would certainly help Nintendo get back some of the lost sales that it is facing right now.