For a while rumors have been circulating about a next-gen DS, but nothing official had been said until just recently when Nintendo announced that they are indeed working on a new DS and it will be capable of producing 3D images without the use of glasses. Most probably didn’t know that this was possible, but now we’ve got a new bit of information about this.
Apparently there have been some leaks in Japan about a new LCD screen built by Hitachi and Sharp. Right now it’s rumored that this will be the screen that Nintendo uses for their new DS, which has been coined the Nintendo 3DS for now. The screen is 3.4 inches and boasts a 480×854 pixel display. As for how the screen will work, it features what is called a parallax barrier system which basically creates the illusion of 3D images like the normal glasses due, except with vertical slits in the screen which will allow the light to be aimed at the left and right eyes, thus creating the effect.
According to Engadget, the screen will go into mass production before June, but there is no news as of now about a touchscreen version. However, if this is indeed the screen that Nintendo plans on using then you can expect the touch version to follow closely behind since we’re now expecting to see this new DS by the end of the year. Keep an eye open for when E3 comes around as Nintendo will be revealing this in greater detail at that time.
I don't mean to be self-promoting (well maybe a little) but I've done some photoshopping to compare the resolution of the old DS screen and the 3DS screen. You can have a look at my http://www.nintendo3ds.org.uk I think it's going to look really cool. 480×854 pixels is a very high density on a 3.4" screen.