Japanese newspaper the Nikkei has just published a story that confirms the rumors of the last couple months, namely that Nintendo’s new system (codenamed Project Cafe) will indeed use touchscreen controllers with cameras built-in. We had anonymous confirmation before, but the Nikkei has a little more credibility than “a source.”

The controller will have a six-inch touchscreen and camera, as rumored, and will have tablet-like functionality.

At this rate the new controller is going to be twice as expensive as an actual DS Lite! We’ll find out next week just what Nintendo has in store for us at E3.