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Nintendo has announced it will launch a new version of the popular DS handheld console. The new version, the DSi, will add a camera, SD card slot for music and downloads and a larger screen than the original DS.

The console will also feature a game download service, along the lines of the Wii and the Xbox 360. While this isn’t anything new these days… as noted by the Wii and the Xbox 360, analysts have noted that the download service could have an effect on video game sales by media sales giants Best Buy, Circuit City and GameStop.

Matthew J. Fassler of Goldman Sachs told investors in a research note that the DSI could be perceived as a “tangible early threat” to portable systems that rely upon cartridge reliant consoles. Although there are only 10 games currently available for download, Fassler noted that more will become available.

With portable games accounting for nearly one quarter of new game sales, this could be a significant dent in the retail store’s sales. On the news, Best Buy’s stock shares fell by $2.

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