@tbone
basically, current displays have their circuitry within the bezel, the area around the edges of the screen or behind it (though the side usually make it thinner).
For example, running through all the edges of the 3ds is the circuitry. All that plastic conceals it.
Alternatively, free-form displays have the circuitry actually running through the screen. Obviously, this allows manufacturers to save tons of space by hiding all the circuits within the screen so they can make devices smaller.
It also allows for every manufacturer to have a distinct and unique design, which will help differentiate from other products.
It's a very exciting piece of tech, and I really hope both sony and nintendo use it in a creative way.
Just a half-brained thought, you could just have a screen with the buttons actually coming out of the screen itself.

What could possible game related benefits be with a free-form display ? What could a donut shaped display be good for ?

Now, THAT would be interesting!

This is quite interesting, and highly possible considering that Nintendo's close relationship with Sharp goes way back. If I'm not mistaken Sharp once had a 20 % stake in Nintendo back in the 80's and early 90's. Also considering the fact that Sharp already supply Nintendo with state of the art 3D screens for 3DS and N3DS.

If this rumour is true, then it hints to a new hardware system from Nintendo in 2017. If this hardware truely is a merger between their handheld business and their home console business, then this suggests Nintendo will continue to support Wii U and (N)3DS atleast for another 3 years, which in itself actually is quite interesting from a consumer perspective.

Why is that irrational? It released in 2011 and sales peaked long ago. It is now falling. We're probably looking at less than 10m sold in 2014, which is a 30%+ drop in one year. In 2015 it should drop further to something like 6-7m and sales in 2016 will be very low and begging for a successor. Nintendo can't sustain their business on less than 5m handheld sales and less than 4m console sales per year.

This was the first thing I thought of when I read "doughnut shape"

And highly unpractical.

Live your myth in Greece.:p

It's irrational till we see New3ds/xl perfomance.:P

Not really. A re-release can only do so much. The very cheap 2DS didn't do much before and now something that will split up the userbase will add years to its longevity? 

I think it would be quite interesting as Nintendo would be able to make a regular sized 3DS but have a screen that is the size of the 3DSXL on it because they could get rid of the bezel.