Called 3DS, the system can display 3D images that can be seen without using special glasses.
Nintendo said the novel handheld is designed to replace the existing DS and is scheduled to be on shop shelves in late 2010.
The gaming giant said it had overhauled the graphics system on the DS to bring it into the 21st Century.
Playing Mickey
The 3DS handheld has two camera lenses which enables owners to take and view photographs in 3D.
One difficulty Nintendo faced in creating the gadget was the incompatability between creating a 3D screen and a usable touch-screen interface.
Consequently on the 3DS only the top screen displays 3D while the lower screen is a functional touch screen.
At its briefing Nintendo showed the first game that will be released for the 3DS called Kid Icarus Uprising.
One other feature new to the 3DS is an always-on wi-fi connection that will automatically feed levels and updates to players. Nintendo said the net service behind the always-on updates will be free to use.
(One screen displays 3D and the other is a touchscreen.)
At the event Nintendo also showcased a number of new titles that included Donkey Kong Country Returns, a new Legend of Zelda called Skyward Sword, Mario Sports and, after a 13-year gap, Goldeneye 007 for the Wii.
Veteran game developer Warren Spector was also at the event to show off his new game Disney Epic Mickey - a 3D action adventure with a heavy Role-playing element set in the Disney universe.
Gamers play as Mickey Mouse who travels around a dynamic 3D world in which he can use paint or paint thinner to create or destroy the environment which will have a direct effect on how the game plays out.
Mr Spector has developed a number of classic gaming titles in the past such as Deus Ex and System Shock.
BBC
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