We all knew it had to happen sooner or later and now the cat appears to be definitively out of the bag – Nintendo will be launching a new version of the DS within a few weeks.

The influential and almost-never-wrong Nikkei business newspaper reported this morning that the new DS will arrive before the end of the year and that it will come with a built-in digital camera and the ability to play music.

Whole new ball game

The Nikkei even went so far as to pin down a price for the DS2 – it says it will cost around ¥20,000 (£102), which is just over 20 per cent more than the existing DS Lite model.

If the rumour turns out to be correct – and you can put your house on this one, trust us – Nintendo will thus be competing with not just Sony's PSP, but also a whole new class of devices, including iPods and digital cameras.