Nintendo reportedly plans to launch a new model of its DS handheld device that will be equiped with a digital camera will play music, the Nikkei business daily reported on Sunday.

The move would pit the top-selling portable game gear with Apple Inc iPod and camera-embedded cellphones in general.

The new DS is expected to be available in Japan by the end of the year for less than 20,000 yen ($189), the Nikkei said.

The device, which will be also be equipped with advanced wireless communications functions, may be competitive with current wi-fi enabled mobile phones, Apple's iPod as well as Sony's PSP rival machine.