I thought the rumours of Acer building a console died last year when they surfaced, but apparently not. According to German site Donamimhaber (lit: Hardware news) such a system is being built by Acer - using Nvidia's Ion platform no less.
This isn't just idle speculation, either. Donanimhaber has a bunch of official-looking slides to back up its claims. The system looks like a cross between nettops like the Eee Box - due to its monitor-mountable form factor - and the Wii, thanks to the proposed input method - motion-sensitive controller.
Calling the device a games console is probably a bit of a stretch. Simply put the system is simply a small PC which has enough grunt to play a reasonable selection of modern games at a decent resolution and graphic settings. Asus even has a similar offering already, in its Eee Box with dedicated Radeon HD 3400 graphics.
If this is more than just a concept piece it could prove an interesting product, nonetheless. Even if only as a rare example of a PC actually using Ion!
Donanimhaber (Google translated).