Jayscott

The most interesting part of this rumor, to me: onboard storage. That means the opportunity for downloadable content, ala iPod. Probably means flash memory, I can't see Nintendo accepting the drain on battery life associated with a spinning hard drive, but I also wouldn't be surprised to see SD memory card support (consistent with the Wii).

Highly unlikely this gets formally announced in 2008, there's absolutely no need on Nintendo's part.

Those console fees are exactly like the licensing fees you see for manufacturing a DVD player using the DVD standard, a DS cartridge (which, incidentally, you also pay Nintendo to manufacture), or any other product that involves a proprietary standard or patent pool. Forbes sends out a slightly tainted message by simplifying with "PS3 has higher licensing fees"; as with both Xbox and PS, it depends on the launch price of the game. The gap between the two is very very small.