Get ready for the rumor frenzy. According to EDGE, analyst Michael Pachter is telling investors that, with DS sales taking a dive in Japan and PSP on the rise, Nintendo may release a new handheld game console by year's end:
We think that the timing of a new product introduction will depend upon the sales profile for the DS, and believe that lower than expected DS hardware sales could trigger an earlier launch for the new device. DS sales are solid worldwide, but are weak in Japan, leading us to expect an introduction of a new device in Japan before the end of the calendar year. We think that Nintendo has a new handheld device ready for launch in [Japan] before the end of the calendar year.
We don't know if this is going to be the Nintendo DS 2, but that's the most probable scenario, as Iwata is not very optimistic about new breakthroughs, and the DS touch concept works quite well. On the other side, it could be something that combines the DS with another device.