DSi: Yes, a new DS.

There are plenty rumors about a redesign of Nintendo's best-selling DS system. However, this is not only a redesign, but a huge upgrade. Why? This is the DS that'll sweep the PSP off its pants (save for the graphics which are still the same). It's called the DSi.
It will have two cameras: the front having 3 megapixels, and the inner having VGA. That means, yes, you can shoot pictures (and potentially have video chats) while playing. Plus, it will have a photo viewer, a music player, a built-in Internet browser, and Photo Channel integration. No video from what I've heard as of now.
The GBA slot has been omitted however, and that would be a bummer especially for Pokemon fans. In return, the device is 12% thinner than the DS Lite (HOW?!), and the screens are bigger. Plus, there's an SD card slot for music and photo storage. Potentially, this will also serve as a great way to introduce downloadable content for DS games, and Nintendo's not snubbing that possibility either, because there's also a DSi Store where you can buy stuff for Nintendo Points (not Wii Points). Hmm, maybe you can download GBA games as well?

It will sell in Japan this All Saint's Day, with the rest of the world having to wait for next year. Hmm, would've been a nice product to launch in the holiday season... what are you thinking Nintendo?!

This is the DS that will make Sony scream. So PSP owners, expect a 5 megapixel camera built-in the next PSP iteration.