sauce
Summary: according to that article and many others I read this morning the next generation of Nintendo console system, which has yet to be named, is set to release in 2012 with a showcase scheduled for E3 in June. Speculation surrounding Project Cafe says that the new console will be running full 1080p HD, and the controller will feature a small touch screen which you can interact with during play (picture in the article is not official).
According to another article the next gen system coming from Nintendo will not be centered around 3D. So the innovation that he's talking about is something else (or maybe it's just the controller).