Games giant believes the Wii U, complete with touchscreen, HD, camera and phone, will compete with rivals Microsoft and Sony.
The new device known as Nintendo Wii U will launch between April and December 2012.
Nintendo is aiming to break the mould with its next home console, called the Wii U.
Nintendo’s announcement will pressure their rivals, Microsoft and Sony to come up with new gaming systems. This invention could jumpstart a $65bn (£39.5bn) global industry. At the E3 games conference in Los Angeles, it was announced that the new device will be launched between April and December 2012. However it was not revealed how much it will cost.
The console can also be used to play games with a TV screen. Its controller can be used to make voice calls and will be able to run previous Nintendo games. It has motion-sensor capabilities and works in conjunction with existing Wii controllers, the company said.