With sales of Wii finally beginning to decline, Nintendo has revealed the inevitable news that a successor to its home console is currently in development.

The new console will be playable at E3 in June, which is also where Nintendo will reveal the specs of the new machine. It's rumoured that Wii 2 will be HD and backwards compatiable. There' also been suggestions that the controller will host a six inch screen where you can watch your game in action.

In a recent financial call, it was revealed that Nintendo's profits for 2010/2011 financial year slipped by 66% from 228bn yen (£1.6bn) to 77bn yen (£570m)