While Microsoft tries to figure out if it should take Tegra-powered Zune HD in a gaming direction or the Xbox in a portable direction, there are wild rumorings from the underground that claim Nintendo is planning on using Tegra to power a next generation DS handheld. The primary source on this comes from Bright Side of News (which doesn't have a big track record to judge by), who claims the debut is planned for late 2010 and conjectures that the device could either use the upcoming 40nm 2nd-gen Tegra tech, or the existing, tried-and-true 65nm chip. There were rumors from Yahoo! Games of a Tegra DS afoot at GamesCom in August, with higher resolution screens and full backwards compatibility, and PC Perspective also claims its own NVIDIA insiders are confirming this -- the evidence is certainly stacking up. If it turns out to be true it's going to mean a pretty dramatic jump forward in portable gaming power, but either way this generation of handhelds seems due for a refresh, and there's plenty of ultra compact silicon floating about to make a graphical leap possible.

[Via PC Perspective; thanks, Fernando]