Apparently so.

Microsoft Canvas

One Touchscreen

Stylus

Y, B, A, X on the left of the device

16GB flash drive

New Xbox experience connectivity with Avatars and Avatars "Home"

Games are download only, via X360 and PC

2 Rare games ("Doodle" and Kameo)

2 Mistwalker titles

Front Mission

That's all I've heard for now. Apparently my source will get some hands-on time with it next week.

I had hoped this was someone quoting some stupid rumor. Apparently it is someon trying to start a stupid rumor. Your source or (more likely) you are lying.

Why would they announce it in Japan?

Then why are the M$ developers working on DS titles

I really doubt it...

Gnizmo: Guess we'll see soon enough.

slimeattack: Have you seen DS and PSP sales in Japan?

Munkeh111: MS will not own the Viva Pinata IP for much longer.

you made a new account to post some "rumor" that doesn't even have a source link, stating some generic stuff that any random guy can come up with.

very very not credible at all. looks very much like a fanboy just wanting to create some hype.

Isn't this breaking the rules? Link or source or just don't post anything at all.
This is just flamebait, and everyone knows this isn't happening as it would be a suicide.

Then how come mistwalker is also making games on DS, and they are basically funded by M$