NY Times reports that Nintendo is developing a new, 3D capable successor to its DS handheld game system, one the company is preparing to debut at E3 and bring to market within the year. Called the 3-DS, the system will be backwards compatible with original DS handhelds and is said to display 3D images without the need for special glasses. Nintendo’s Ken Toyoda said the company wanted to give the gaming industry a head s up about what to expect from Nintendo at E3. NY Times says the device is slated to go on sale at some point during Nintendo’s next fiscal year, which starts on April 1, 2010. Read more at NY Times.

Elsewhere, Edge-Online reports on rumors about the system to-date. They include speculation that it will use Nvidia’s Tegra chipset, and that The Pokémon Company is already developing games for it. Read more at Edge-Online.