Nintendo will allegedly release an improved version of its Nintendo DS gaming gadget, featuring a camera and music playback capabilities, according to a report by The Nikkei Business Daily. Also, the gadget's wireless capabilities will be revamped and it will cost less than ¥20,000 ($189).

It is also possible that the launch will occur as early as Thursday, when the Japanese company is scheduled to present an unnamed "new product" at a news conference in Tokyo. The camera function of the new Nintendo DS could allegedly be integrated with gameplay, by allowing games to use the photos taken with the hardware.

Earlier this month, it was leaked that Nintendo is working on an updated version of its DS. The next DS, which was then said to come out early next year, will allegedly have two touch screens, sort of like a dual touch DS. The company will face competition from Sony, which will introduce the new PSP-3000 handheld entertainment system on the Japanese market this fall.

The Nintendo DS is a dual-screen handheld gaming machine with a clamshell design. It was first launched in 2004 in Canada, the United States and Japan, followed by the release of the console’s second version two years later. Introduced on March 2, the new Nintendo DS Lite featured a slimmer and more lightweight design.

Nintendo DS is a huge success for the Japanese company, with 54 million units sold worldwide since its launch. Nintendo DS was also crowned as the best-selling video game system in the United States in 2007, with more than 8.5 million sold copies. In the past four months, Nintendo DS enjoyed strong sales in the US with 783,000 units sold in June and 608,400 in July. However, in August, Nintendo has managed to sell only 518,300 Nintendo DSs.