For those who thought the DS had reached its pinnacle with the DSi or even the DSi XL, think again. According to a report from the Associated Press (News - Alert), Nintendo has said it plans to begin selling a 3-D version of its popular handheld gaming console before the end of the year.

A 3-D display will be the prominent feature of the “Nintendo 3DS”, eliminating the need for 3-D glasses. The good news for current DS owners is this new system will be compatible with software made for earlier versions, according to Nintendo.

While Nintendo is leaking little else about its upcoming release, the company did say it would reveal additional details in June at the Electronic Entertainment Expo in Los Angeles.

Even with just this snippet of information, it was enough to get the wheels churning within the tech industry as blog and Twitter feeds speculated as to the future of the company and what its strategy will be to stay ahead of rivals.

This foray into 3-D and the capitalization on the long-running success of the DS demonstrates the company’s commitment to this platform. With the Wii losing market share, the company needs a strong leader.

The DS has remained solid in the market a good five years after its launch. While sales are gradually slowing, the handheld topped U.S. game hardware sales in February with 613,200 units sold, market researcher NPD Group (News - Alert) says the DS beat out Microsoft’s Xbox 360, the Wii and Sony’s PlayStation3.

Overall, the DS has enjoyed global sales of more than 125 million units since its launch in late 2004. To expand on the product’s success in the entertainment segment, Nintendo plans to take it to the next level with educational aids and teaching tools, according to the AP.

A senior Nintendo game designer, Shigeru Miyamoto, told the AP that the company will be rolling out the DS system in Japanese junior high and elementary schools in April. This expansion is part of the company’s efforts to broaden the audience for its gaming consoles.

Miyamoto said that the Nintendo DS console has already found a home in Japanese Museums, galleries and aquariums and that the company is looking to roll out the handheld consoles in the education system. Japan’s Western Fine Arts Museum is one location that has harnessed the handheld consoles capabilities.

This announcement hits the wires mere days before Nintendo is set to release the latest DS version: the DSi XL, in North America. Priced at $190, this new device will have two screens, but the device and screens are expected to be much larger than the currently available models.