The DS will sell alongside today's Game Boy Advance, not replace it, according to the company. Nintendo has not announced a release date or price, though analysts predict it may sell in the $150 range.

One of the two 3-inch screens is touch-sensitive and works with a stylus � like Palms and Pocket PCs � to control the action in some games. In one demo, players guide a toddler-age Mario as he falls from the sky by drawing clouds. Other games give multiple views of the action.

The DS also has Bluetooth wireless communication to connect with other units within range for cordless competition. DS has separate slots for current Game Boy Advance cartridges and new, smaller DS game cards.

DS is largely viewed as Nintendo's response to Sony's PlayStation Portable, or PSP, a new system that will play both movies and video games stored on mini DVD discs. Sony has announced plans to release PSP in Japan later this year and in the USA in 2005.