The controller will also feature a camera which could be used for things such as creating avatars based on players' own faces or augmented reality applications.
According to the report, the controller will also double as an independent portable games system as well as being able to stream media from Project Café to itself.
Nikkei's report claims that the new console could launch as early as "mid-2012," raising questions as to Nintendo's plans for the Wii in the meantime.
All will hopefully be revealed at Nintendo's press conference on Tuesday at 9am Pacific.
This article originally appeared on GamePro.com as