The Nintendo DS is due for an update and new reports from Japan indicate that Nintendo would release a new DS in time for the Holidays.

Update: Nintendo DSi has been announced

The new Nintendo DS is rumored to include two touch screen (currently only one has a touch interface), a built-in camera, and SD card slot.

The SD Card slot would allow you to finally store data like music on the DS. It could also be used to exchange data with the Wii.
At this point nothing is confirmed about the new Nintendo DS. It is also not clear if Nintendo would release the new DS only in Japan for the Holidays or if they will launch it globally.
Sony updated the PSP for the Fall with some minor improvements already.
Via IGN. See more photos of our hot Nintendo DS Gadget Model.