It appears that, despite denials earlier this year, are working on a new console.

According to sources close to Videogamer, Nintendo will unveil a new platform at E3.

The source, an employee of a major publisher, said: "Just heard a that you may be interested in: Nintendo are going to announce a new platform at GDC. Some devs have already started work on it."

Given that there have been rumours about both a HD and a successor to the it is unclear whether this is a handheld or a home console.

Satoru Iwata did drop some clues in a recent investor question and answer session.

Iwata said: "If asked if making the Wii compatible with high definition - just making it compatible with high resolution - will get players throughout the world to buy it, I would of course say 'do you think it would sell with just that? It needs something new'."

He added: "If there were no rival makers in the world, I could give examples of the things that we are considering. However, for competitive reasons, I cannot give specifics today on the what or when of the things we're considering."

We'll keep you posted.

By Ewan Aiton