According to Kotaku, the source of these rumours was actually a rather leading question posed to Iwata-san by the second largest newspaper in Japan, The Asashi Shimbun.
On being asked, "The graphics for the next DS will be highly detailed and it will contain a motion sensor, right?" Iwata replied, "Those things are naturally being required. But do you think it would sell with just that?"
While the reply seems to confirm the presence of both motion-sensing and better graphics, the latter seeming fairly obvious anyway for a new console, it hints that the DS2 will be exploring other avenues as well.
Hopefully this means that Nintendo has something more interesting up its sleeve than it did for its last few console iterations.
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