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The Pokemon Company is in possession of DS2 according to a report by CVG, who adds the handheld console will have motion-sensing capability.
The rumoured DS2 development kits are in the hands of select developers in Japan - and include a motion-sensing function, CVG has reported. The biggest of the firms working with the device is The Pokemon Company, which CVG says was the first to be offered the kit.
An insider at a third-party studio currently toying with DS2 said he was aware that "a handful" of other developers had been given the hardware on a trial basis. The same source says that Nintendo said the kit was the first version of what will become the finished product. The platform holder is asking those trialling the hardware for feedback.
"It's genuinely the best thing I think I've ever worked with," he said. "I can tell you that it's got a 'tilt' function that's not dissimilar to iPhone, but does a lot more. We know that The Pokemon Company are getting special attention with it."
The source doesn't expect the hardware to be shown at GDC: "Any kind of March announcement wouldn't fit with the timeline I understand the second DS to be on."
Nintendo told CVG that it wouldn't comment on "rumour or speculation".