The Nintendo DSi will feature a camera, a built-in web browser, and support for downloadable games--all features available on Sony and Apple's handheld platforms.
"We wanted to create an offering that would fit naturally into people's everyday lives," said Iwata, who mentioned that the goal for the DSi was to have users wanting the device on them "at all times."
Elsewhere, Sony director of hardware marketing John Koller expressed half-hearted optimism for the DSi, while also questioning whether the unit will increase Nintendo's demographic.
"I can see the DSi being successful," said Koller to Gizmodo. "The DS lite was obviously very successful. Will DSi do well with [the DS's] demographic? It probably will. Will it be a product that expands their user base [beyond] under 12? I'm not sure."
The Nintendo DSi is set to launch in Japan in November, but the handheld won't make it to North America until "well into calendar year 2009," according to Nintendo.