Citing the Nikkei newspaper, Thomson Financial reports that Nintendo is planning to sell a "localized" version of its DS handheld system in mobile phone shops, although no details of what form the localization will take were given.

The firm is said to be preparing to debut the device this month in Taiwan and launch it in the Chinese market by the end of the year.

Late last month Nintendo announced that it would be releasing its Wii home console in Taiwan on July 12.

Meanwhile, Sony has revealed plans to work with Taiwanese authorities to train domestic game developers beginning this September, with a view to releasing their titles over the PlayStation Network.