Nintendo will move to HD in order to keep up with graphically superior competition.

wii - Analyst predicts HD Wii in 2-3 years

Wedbush Morgan analyst Michael Pachter believes the era of HD video games will force Nintendo to release an HD equipped Wii console within 2-3 years.

"Consumers may hope for improved graphics, and my guess is that Nintendo will comply," Pachter told US videogame magazine Gamepro. "In two or three years, commodity prices for graphics processors and CPUs may decline to the point that a High Definition Wii could be introduced. If so, Nintendo will likely introduce one."

The current Wii is only capable of outputting in standard and enhanced definition (480p) resolutions, whereas the PS3 and Xbox 360 both support video resolutions as high as 1080p.