The Nintendo DSi, the redesigned DS, is smaller and comes with a 3 mpx camera.

The rumors were true -- Nintendo's ace in the sleeve this week is a redesigned DS, called the Nintendo DSi.

The new DS looks a lot like the old one but with some significant changes: it's 12% thinner than the DS Lite, and will include a built-in 3 megapixel camera that sits on top of the system and a smaller 0.3 megapixel camera in between the two screens. The screens are also slightly larger -- going from 3 to 3.25 inches, and will include an SD card slot.

The DSi's other new tricks: the ability to manipulate images stored on the SD card and photos can be synced with the Wii Photo channel. The speakers have also been improved and users can change the pitch and speed of the sound.

The new DSi will launch an online DSi shop via Wi-Fi and a browser that will be built into the system. Similar to the Wii Shop, the DSi shop will take "Nintendo Points," (formerly known as Wii Points) and prices for the store will be 0, 200, 500 and 800-point tiers. Nintendo says the shop will include games that you can download and store on the SD card.

The DSi will launch in Japan on November 1, 2008, and will be available in black and white for 189,000 yen (or roughly US $178). The system will ship everywhere else in 2009.

How will the smaller DSi be able to accommodate all of these new wiz bang gadgets? Well, it gives by taking away. In this case, the big Game Boy Advance card slot will be no more. This might come as a shock to GBA loyalists, but no worry, Nintendo says it considers the DSi a third platform and, if the company's console history teaches us anything, the DS Lite won't go away anytime soon.

This is the third redesign of the Nintendo DS since its launch in 2004. We suspect that these more "mature" add-ons are Nintendo's attempt to stay on top of the handheld gaming market as the Apple iPhone, iPod Touch (and copycats) edge into their territory. Also, the PSP will be launching a new model in October, with a better screen and built-in microphone.

Nintendo DSi Images

    Nintendo DSi comes with a 3 mpx camera and the lens sits on top of the system.

    Nintendo

    Also appears that there is another lens on the inside of the system, we guess making it easy to snap shots of yourself. We're sure this will lead to putting yourself into a game, or maybe using this to put your real face on your Wii's Mii avatar.

    Nintendo

    The DSi comes in black and white and will be released in Japan in November. We expect details on the US version will be announced at a San Francisco press conference tomorrow.

    Nintendo

    Manipulate photos on the DSi.

    Nintendo

    New DS card for the DSi. This will also be used as a storage solution for the Wii (users can store games on the card starting spring 2009) -- though it's not exactly the fix we we expected. It seems more like a stopgap measure until Nintendo gets something bigger out the door.

    Nintendo

At the same press conference in Tokyo, Nintendo Prez Satoru Iwata also attempted to address growing concerns about the Wii's lack of storage by saying that users will be able to download games onto SD cards starting in Spring 2009. It's not exactly the harddrive we were looking for, and it really seems like a stopgap solution until something better comes along. Iwata also says they will be releasing a new Wi-Fi adaptor to encourage more people to use the Wii's online service.

Nintendo has a press conference planned in San Francisco tomorrow, and we assume that will be the official announcement for the US version. We have a reporter on the ground who will be covering it from the event. In the meantime, check out the DSi's official site (in Japanese) to see more images and features on the brand new DS.

[Via Nintendo, Kotaku, MSNBC]