Nintendo's currently dominating in hardware sales in both the console and handheld market. How'd they do it? By scrapping projects they didn't have full confidence in, according Nintendo global prez Satoru Iwata.

Iwata told CNBC that within the past three years, they completed a handheld system but decided against releasing it. He didn't offer any details about this canceled handheld. However, he did mention that this wasn't the first time they've kicked potential hardware to the curb.

“In the history of Nintendo, there are several such examples," he says. "But when we are launching new hardware, the most important is thing is to sustain the momentum. If introducing new hardware won’t do anything to do that, well…"

Nintendo released the DSi, an updated version of the DS, in early April and sold over 1 million DS units in the US that month so Nintendo's probably thinking, "If it ain't broken, don't fix it." It's possible that Iwata didn't give any details on the handheld because Nintendo will end up incorporating ideas from that system into a new device. While the DS is kicking ass, they no doubt have something new in the works.

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