Nintendo announced Wii Fit at the recent 2007 E3 Media & Business Summit. Wii Fit is a very interesting attempt to encourage people to engage in exercise and fitness routiness using the Wii. Wii Fit uses a specially designed Wii Balance Board to allow people to engage in interactive fitness games and exercises. Here's how Nintendo describes it on the E3 press page.
The active-play phenomenon started by Wii Sports now spreads to your whole body thanks to the pressure-sensitive Wii Balance Board (name not final), which comes packed with Wii Fit. The board is used for an extensive array of fun and dynamic activities, including aerobics, yoga, muscle stretches and games. Many of these activities focus towards providing a "core" workout, a popular exercise method that emphasizes slower, controlled motions. Family members will have fun staying active and talking about and comparing their results and progress on a new channel on the Wii Menu.
Engadget, GameSpot and Wiifanboy also have articles explaining Wii Fit. Wired's Game|Life says the U.S. will not see a Wii Fit release this year - only Japan will have a 2007 Wii Fit release. It looks like 2008 for Wii Fit in the U.S.
The video below offers the best explanation of Wii Fit -- sometimes you have to see it to be able to understand the concept.