Nintendo demonstrated its 3DS at the E3 show, the upcoming handheld console features a 3.5" 3D screen that doesn't require goggles, and a 2D touchscreen. The device features two cameras that make it possible to capture 3D photos, and Nintendo has integrated motion and gyro-sensors to enable new gameplay modes.
At Nintendo's keynote press event today, Satoru Iwata unveiled the new handheld gaming device, featuring a 3.5-inch widescreen that displays content in 3D without the need for viewers to wear special glasses. The bottom touch screen remains about the same size as the DS Lite or DSi. Iwata mentioned that they experimented with making the top screen touch sensitive, as well, but that using it and leaving smudges, etc. had a negative impact on the 3D experience.
There is a slider on the side of the device that allows you to control the depth of the 3D effect, like with NVIDIA's 3D Vision. They integrated an internal motion sensor, gyroscopic sensor, and the analog controller they call the "slide pad," all of which will hopefully be fully taken advantage of to innovate how games are controlled. Iwata confirms that there is "improved graphics capability," but did not elaborate further.
More details can be read at Firingsquad. The Nintendo 3DS launch lineup includes lots of A-list games, including 3D versions of Metal Gear Solid, Assassin's Creed, Saint's Row, Kingdom Hearts, Resident Evil, Batman and a new Nintendogs game that will also feature kittens.