Japanese games giant Nintendo raised the stakes in its war with Apple's iPhone after it launched a new-look version of its popular DS hand-held games console.

The the Nintendo DSi can be used to take photos, download games and play music. It will come with a free game that allows users to make their own moving comic strip.

The DSi will cost YEN18,900 (£100) when it goes on sale in Japan next month. It will be available to European gamers in spring 2009.

Nintendo has been credited with bringing a new audience to the world of gaming. Women and young girls love the puzzle and brain-training games available on the DS, as well as its ease of use, while the Nintendo Wii, which uses wireless motion-sensitive controllers, has proved a big hit with families.

"We want to change the DS from something that's in every household to something that's for every person," Nintendo's president, Satoru Iwata said .

He said the new console could be the very first toy camera for a child and a social communication and networking tool. Nintendo has sold more than 77.5 million DS consoles since the device first went on sale in 2004 but it faces stiff competition from other console manufacturers as well as newcomers to gaming.

Apple's iPhone has emerged as a significant new mobile gaming platform, with millions of users downloading puzzle and driving games to play on the device.

Apple's chief executive, Steve Jobs, recently said a "pretty good argument" could be made for calling the iPhone "the best portable device to play games on".

The 3-megapixel camera is housed in the lid -- there's another, lower-res camera in the hinge on the inside.

Replacing the GBA port with the SD card slot means the DSi is thinner than its predecessor, as well as enabling all the multimedia gubbins.

The DSi will also be available in white.

By Claudine Beaumont, Digital Channel Editor
Nintendo launches new hand-held games console - Telegraph

Nintendo DSi: DS Lite upgrade packs 3-megapixel camera - Crave at CNET.co.uk

i cant wait till next spring....do you think the DSi will be able to use the R4 cartridge? ie, is the r4 region free when you d/l games ..if so ill buy a dsi online from japan....yataa!.........nice find mate

R4 is defo region-free mate.
HH.

Thats a welcome bit of news, I guess this will go head to head with the new PSP in Japan (where both are quite big, the DS is winning).

Shame it doesnt have a complete redesign visually though.

good improvements on an already very popular device...