I really doubt it, but I'm going to go as a maybe, since there were hints of a successor being worked on.

Nintendo rarely even partakes in TGS so unvieling such a big thing there would be pretty insplausable. I think Nintendo is going to play chicken with Sony. Wait for Sony to break and announce a new PSP. Nintendo always has some insight into Sony's operations they will know if a new PSP is going to be unvieled. If a new PSP is unvieled at this E3 then so too will a new DS/GameBoy!

E3 or Tokyo Games Show (or October Summit)...launch in the first half of 2011 (Japan).

More and more Japanese companies are partaking in the TGS, including Nintendo.  Its becoming a major event.  One that even rivals E3 (which has become much smaller and less impressive than it use to be).  So I wouldn't discount Nintendo making a major announcement there, especially after a number of other companiers, like SquareEnix, Capcom, Sega and even Sony have in the last few years.

But I totally agree.  If Sony was set to unveil a new PSP, Nintendo would most likely prepare to show off their new DS.  But considering their track record, they aren't one to just jump into showing off hardware because a compeditor is forcing them too.  Even if Sony was getting ready to show off a new PSP at E3 and Nintendo knew about it, they may not be showing off the new DS right at the same time unless they feel its the right time.  As we all know, Nintendo is fickle and they WILL put keeping a secret or quality control over hype and trying to 'one up' the competitions announcements.  But not like this is exactly bad, since sometimes this leads to even better improvements to their hardware down the road.

I'd say waiting for the next PSP is more to avoid Sony stealing anything than being forced by that PSP.

Remember GBA. It was released 2001 and then DS was released at the end of 2004.. GBA was selling just fine but still Nintendo released DS.

I think the DS release was probably out of retailiation to the PSP launch. I'm guessing now, once again, Sony will have to make the first move in terms of a new handheld in order for Nintendo to drop the DS2. I don't see any great reason for Nintendo to cut off the DS line just yet. Also, the launch of Ninty's handheld must have some correlation to their next console. However, Nintendo hasn't had a leading console/handheld tandem since SNES/GB, so I don't really have a good clue as to what they will do now.

Fascinating stuff isn't it?

"I think the DS release was probably out of retailiation to the PSP launch."

You can't predict something based on your guess of something that happened before.

even if they released the DS to combat the PSP they didn't cut off the GBA when they did. They even released an new hardware revision the GBA micro after they released the DS almost a year after in japan. As the DS is stronger than the GBA was I think that nintendo will keep the DS on the market for as long as they can even alongside it's successor much like what Sony have done with the PS2, And I can see the DS lasting even longer. I think that Nintendo would cut the DS light but keep the DSi and DSXL probably with a price cut and aim their new hardware at early adopters.

Well, the Game boy Advance sold quite the amount in the 3 years before the DS arrived. It is at 81.5m as of the end of 2009, so IDK probably ~50m when the DS dropped. With momentum like that Nintendo likely dropped the GBA for a reason

Seeing as to how Nintendo is on top of the handheld world again this gen, I doubt they are going to budge. With their current sales, I personally don't see the need for them to drop a DS2 this year. People are probably saying that because they want Ninty to, not because it makes a lot of business sense. 2011, maybe, but 2012 seems prime for a successor. Nintendo may quicken the pace if Son moves first again.