Sharp has been showing off a 3.4-inch, 480 x 854 pixel display that creates the 3D effect by using "a parallax barrier system to create a sense of depth by using a series of vertical slits in an ordinary LCD to direct light to the right and left eyes," according to Engadget.
Multiple sources have indicated to Shacknews that this is indeed the screen for the 3DS, specifying that the display will make some assumptions based on viewing angles and have a so-called sweet spot for the 3D effect.
According to Engadget, versions of the display without touchscreen technology will enter mass production before June, followed by the touchscreen version that's in the 3DS .
Akihabara News got a look at the display and calls the technology "mind-blowing". We should be getting a look at the 3DS, screen and all, at E3 2010 in June.