The console-maker has admitted the GameCube isn't selling too well because of competition from the Xbox.
Sony's PlayStation 2 is still the biggest-selling games console.
The GameCube hasn't been as popular in the US and Europe as Nintendo had hoped.
Over Christmas Sony says it sold 8.5 million PlayStation 2s, while Microsoft says it sold more than a million Xboxes.
Nintendo's president Satoru Iwata said "We are developing a new home video game console.
"We will get ready for a battle."
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