In other words, you can think of the new controller-plus-console combination as a modern Dreamcast system or "glorified mega-DS," as Kotaku puts it, where the TV is the top screen and the handheld controller is the lower touchscreen. If true then we'll likely hear the official first word at E3 which kicks off on June 7th.The 6.2-inch screen will receive data wirelessly from the Nintendo console and presents an array of options, from putting the player's inventory or map on the controller screen, to allowing players to combine it with the controller's camera to snap photos that could be imported into a game or even turning it into some sort of glorified viewfinder (we're unclear about whether the camera on the controller points at the player or can be outward-facing; we've heard both - maybe it swivels?).
Update: IGN has its own set of "sources" confirming many of these details. Could this be a Nintendo rumor that pans out, for once? We should know in just over a month.