Nintendo apparently was in a bit of a bind because it needed to make a good impression at E3, but it didn’t have a product. The ATI graphics card which will be a feature of the Wii is still in development.
The forum claims that the machine on show was just an empty box with a light on it. A large number of cables were seen coming out of the back which appeared to lead to a Gamecube.
The claim is that the Gamecubes were tinkered with to run a Wii development kit, with the signal routed back through a pretend Wii machine. More...
Credit: The Inquirer