A portion of a Joystiq interview with David Young, the assistant PR manager for Nintendo of America...

J: Does Nintendo view the Sony as the handheld competition? Or are you just competing against yourself? DSi sales will certainly chew into DS Lite sales -- so who is the handheld competition?

DY: Well, you certainly have to recognize that other people are competing against you and trying to be in the same space that you are. It doesn't affect what we're doing: we still have our plans and we're executing our plans.

J: So, how long will it be until Nintendo gets the DS just right? Will we see other named handhelds coming out from Nintendo?

DY: It's hard to say. The thing about the handhelds is that it's a different development cycle, it's almost a continuous line. A lot of it is determined by the market. We think that we've got a pretty good package with the Nintendo DSi. It's really an open canvas for developers. We'll have to wait and see what happens.

Full interview here