A recent patent application filed by Nintendo of America might contain a few clues pointing towards the capabilities of the giants next game console. Patent 6,769,989, granted August 3, 2004 (which may be perused by searching the United States Patent and Trademark Office database) contains the blueprint for a remarkably multitalented game machine.
The system described in the patent seems curiously similar to Sonys PSX multipurpose console, combining a game player with a digital TV tuner. It would be capable of receiving cable or broadcast TV signals and displaying those at the same time as a game, "providing a unique picture-in-picture video capability."
News source: 1UP.com