Larger Screen Nintendo DSi Expected

But can it boost Nintendos declining sales? The company cut the price of the popular Wii console last month after sales sagged to one third of peak levels, but the device is up against stiff competition from Apples iPhone and iPod Touch as well as Sonys PSP.

Now, Wired is reporting that the DSi will be refreshed by years end with a larger 4 inch display along the lines of the PSP, largely in response to older users comments about the small screen size. The Nintendo handheld currently sports a 3.25-inch screen, which puts it up against the iPhone, whose screen is around the same size. But industry watchers say that alone will not help Nintendos device; a faster processor chip would help the DSi run more demanding multimedia games and give it the competitive edge it needs. Higher quality graphics are also a must.

The new version DSi will sell in Japan for about the same price as the current version. Nintendo declined comment on the reports. In related news, Nintendo plans on launching a new DSi version with more vigorous anti-piracy features for Chinese and South Korean markets before March 2010, the end of the companys business year.