The rumors became true today and Nintendo announced a new Nintendo DS portable game console dubbed Nintendo DSi.
The Nintendo DSi features a larger 3.25 inch LCD display and as far as I can see, two integrated cameras. There is one on the inside for self portraits and one on the outside cover. Nintendo has now integrated a music player in the Nintendo DSi that plays tracks from SD cards.
The measurements of the DSi are slightly thinner than the DS Lite with a thickness of 18.9mm.
The Nintendo DSi will be launched on November 1st in Japan with a price of 18,900 yen (~$178). Nintendo fans can choose between a black and a white Nintendo DSi. Other countries will have to wait for the new Nintendo DSi until 2009.
Via this Nintendo announcement (Japanese). See also this Nintendo DSi video.