The iPod shifted the buying public away from fixed media towards downloadable content. If it makes sense to build a portable Audio/Video player without removable media, why doesn't it make sense for a game player?

I can see a number of advantages, longer battery life, smaller size, greater durability. So will Nintendo or Sony have balls to bypass the retailer and sell direct on their next generation? 

Games take up a lot more space than music.  The hard drive or other storage on such a device would have to be pretty significant.  And do you keep all the games you downloaded on it at once?  That won't suit those who buy dozens of games unless the storage is huge.  I think perhaps this is something for down the road.

isn`t that what a PSP does ???

How about a DS2 that plays VC games?

I just think it would be great if I could use a portable game system in the same way I use the iPod, without having to use a hack. I don't want to drag around carts or discs.

I'd like the smaller size, greater reliability and longer battery life such a system would provide as well.

That could work, especially for the smaller games like NES, TG-16, maybe Genesis/SNES.  Probably not for N64 for the most part.

And the PSP doesn't do this because to do it you have to use removable storage (memory stick), right?  I don't have a PSP, but I don't believe it has internal storage capacity to save these large sorts of files unless you have a memory stick? 

The PSP uses discs AND the memory stick. This device would have no drive bay, or any external connecters (required).

I still believe this is a viable DS skew for Nintendo - but they may not want to do this for at least a year. It means no more selling of carts - pure online.

It makes MUCH more sense for Nintendo (DS), as DS games are relatively small (max 1Gbit - 128Mb?) - versus 4Gig for PSP titles.

...

"Nintendo DS Deluxe" - DSD

- no GBA or DS cart bay
- smaller, lighter, better battery usage
- 4Gig of internal flash RAM (stores up to 40 downloadable titles)
- improved Pictochat, works over WiFi, voice chat
- download/purchase games through a Wii (DS demo/purchase channel) or through any WiFi point
- better management of DS demos (can keep/store several at once)
- extra utilities built into DS (calc, etc..) - becomes a mini-PC
- cheaper games (no physical media) - 25% cheaper?
- like the VC, includes a "virtual manual" for each game
- encrypted/protected memory (cannot extract memory & send to another DSD)
- improved WiFi security model (supports more than just WEP)
- purchases are remembered online, user can download again to SAME DS if required
- functionality to transfer application from one DS to another (removes from first DS)

(optional)
- "OS" built into DS, can download in background (while playing), can also switch out from a game to use various widgets (calculator, time..)
- USB slot (widget/other use?)
- possible GBA compatibility / VC support (if needed?)
- motion sensor built-in (?)

...

Hate to say it, but I would have to buy this (3rd skew) if it came out.

EDIT - a problem with this, is that so many people already OWN DS titles - which they wouldn't be able to play on the updated hardware. Maybe a smarter solution would be this PLUS the existing cart ports. A pure online may make more sense for the DS2?

^^^what a 4Gig PSP game  ???  since a UMD can only hold 1,5 Gigs it would be on 3 discs, haven´t  seen anything that big,  bought a 4Gig memory card for my PSP, only was 40Euros including shipping from Hong Kong, and it has enough room for games, (PSP and emulation... I knew the small size of N64 games would pay of some day) videos and musik, that was the reason I picked it over a DS, I wanted a handheld to do everything anddo it good, still would love a DS but it just isn´t that good at emulation, musik and videos, for me home console is just for gaming because I have a PC and a Stereo and a DVD player, if I had a video Ipod I might have gone for the DS but my ceap 1Gig mp3 player is fine,  a handheld that also does videos and emulation is just  to cool for that price, if you only whant to play PSP games it´s a very diffenrent thing, just like blue-ray, if you don´t want that the price seems to high, if you wanted one anyway its cool

I would really hate to lose my Nintendo DS - AND lose $400 worth of games that were stored on it, with no way to retreive those games...

Yeah, really.  Most of my games, that I play off of the memory stick only btw, are well below 500MB.  I believe I got MGS: PO down to 700MB or so.  If the PSP included a hard drive, which would increase costs since it's cheaper than a video ipod, then it could easily hold a lot of games.  Actually, 8GB sticks would be just fine because I have little problems with my 4GB stick.

All you have to do is make a service like steam, which is exactly what the Playstation Store already does.  You can redownload anything you want.  With the PSP streaming from PS3 and PC, you could use this system already. No new SKU involved.

In other words...it's already been developed, Sony just doesn't use it because they foolishly stuck with UMD.