Speaking with Kotaku, of America have said that news from of a new Nintendo handheld were 'misinterpreted'.

Iwata was quoted in a Japanese newspaper discussing a new handheld device, complete with motion controls and very detailed graphics.

"The answer to the reporter's question was misinterpreted," Nintendo offer, although they don't explain how.

More news at E3 this summer, we hope.

By Luke Guttridge