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Who's fretting the most over Nintendo's DSi?

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Nintendo today unveiled the second update to its massively successful DS video game system. What's new this time around? Bigger screens. Slimmer build. Two cameras (one inside and one outside its clamshell design). A memory-card slot. Music player. Web browser. Wi-Fi download store for games, videos, and applications. And, of course, it still plays past and upcoming DS games, such as the very popular Mario and Pokemon series.

Even before this product reboot (which will hit Japan in November and elsewhere next year), the portable gaming device had been an international hit. Nintendo has already sold 77.5 million DS systems worldwide – ahead of Sony's PSP, which has sold 41 million. One out of every six people in Japan own a DS. And it was the No. 1 selling video game system in the US this August, even beating out Nintendo's other cash cow, the Wii.

Now that the new system – called the DSi – is even more impressive, a lot of analysts are pondering: Who should be afraid of this updated handheld?

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