Nintendo to team up with Matsushita and IBM for DVD-based next-gen hardware

After we detailed the Project Dolphin specs, here's another wee snippet for you from our friends at IGN.

Nintendo Co. Ltd. have announced that they've teamed up with the most popular electronics developer in the world, Matsushita, and computer giants IBM to develop their next-generation hardware, codenamed Project Dolphin internally. The console, in a $1 billion deal with IBM, will utilise a 400MHz Power PC main processor, the DVD medium and will be Internet-ready.

The New York Times reports that Nintendo of America will make an announcement of some sort at E3. Exactly what will be said, however, or just how vague the company intend to be, is not yet known. "The deal is something of a coup for IBM," writes The Times, "which will gain a coveted foothold in a booming market being fiercely contested by three Japanese giants - Nintendo, Sony Corp. and Sega Enterprises".

It seems that Nintendo plans to combat multimedia giant Sony by bringing in two big brothers of their own. The race is on.

Courtesy of IGN