OCT. 2, 2008 • Nintendo unveiled its second freshing of the DS line, the DSi. The new model features a larger screen, yet is 17% smaller than the DS Lite. The DSi also comes with a 3 megapixel camera, will accept SD cards, and will be able to access an online store for downloadable content. The DSi launched in Japan on Nov. 1 for ¥18,056 ($180). Launch windows for other territories were not revealed. While the system will play all previous game carts, DSi-specific titles will be region-locked.

Impact: The DSi seems to offer everything but a cell phone. Right now the system is clearly targeted for the Japanese market. In Japan the DS has set all kinds of sales records, but sales are clearly slowing as the market reaches saturation. The DSi is Nintendo’s effort to regenerate the market. In North America and Europe, the DS is still going strong so Nintendo is in no hurry to bring it to those markets. However, based on our preview of the system, we think the DSi will be a big hit in the Wes when it does come.