I think you guys may be looking at this the wrong way. From what I understand, they completely canned the handheld altogether, and are not planning on releasing it at all. It's all part of research and development. Just because something is created, doesn't mean it has to be released. Iwata commented that there has been a lot of hardware they've created over the years that they never released.
And certainly, Nintendo isn't lacking the funds to spend on R&D.
REVOLUTIONfreak
This. Nintendo had an idea for a handheld, decided to draw up plans for it, and then cancelled it due to the DS's success. Cancelling a handheld =/= a new handheld is coming out/being announced.
Yes, there will be many more handhelds to come from Nintendo in the coming years. But that is NOT what this announcement was stating, rather the opposite.
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