Nintendo canned new handheld - Report

LOS ANGELES--With the announcement of a Vitality Sensor for the Wii, it might seem as if Nintendo produces any old piece of hardware its designers dream up. Not so, according to a CNBC interview with Nintendo president Satoru Iwata.

In fact, at one point in the past three years, Nintendo threw away an entirely new handheld gaming platform.

"In the history of Nintendo, there are several such examples," Iwata said in the interview. "But when we are launching new hardware, the most important thing is to sustain the momentum. If introducing new hardware won't do anything to do that, well…"

As for the its next console hardware, Iwata acknowledged that new motion-sensing technologies unveiled by Microsoft and Sony could impact the company's decisions. For instance, Iwata said Nintendo hasn't decided yet whether to iterate on the Wii or attempt to introduce another industry reshaping console.

"We have the greater potential to create the blue ocean market when people are skeptical," Iwata said. "So when we realize that other people are coming into [this] market…there are two things we [can] do. One is try to intensify the fun nature of something we are already doing. The other is try to create a new blue ocean."