I guess Shiggy, Reggie, and the rest of the Nintendo crew are tired of the iPhone infringing on their mobile gaming market, so the next-generation Nintendo DS Lite could come with a few bonuses to fight back. Up until now, the Nintendo DS has largely been dedicated to gaming. Sure, it’s got PictoChat and you can buy that Opera web browser, but it’s mostly gaming. That may be changing.

Nikkei Net is saying that Nintendo plans on introducing a new DS later this year and it will not only come equipped with the usual dual-display setup, but it will also have an integrated camera and a built-in music player. The new DS will also have “improved wireless functions”, including the ability to connect to “information terminals” for functionality beyond gaming. The camera can be used by games too, opening new possibilities.

If the new DS indeed has a camera and music playback, it will need some sort of storage. Will there be an SD slot like the Wii? Internal flash memory with a USB-out? Nikkei Net goes on to say that pricing will be below 20,000 Yen. Nintendo has neither confirmed nor denied the rumors.