New Nintendo handheld device

Nintendo has announced a new device, the 3DS, that will officially succeed the DS range of handheld gaming devices.
What makes it so cool? Purportedly, the 3DS will display fully 3D graphics without special glasses.
The new device will also be backwards compatible with DS and DSi games.
It‘s been a while since Nintendo has pushed the envelope of innovation in graphics. How did they get their hands on a technology that Sony and Microsoft haven‘t? And is it any good?
We‘ll find out at E3 in June.
Update: Kotaku does some in-depth speculation on the nature of 3D that we can expect from the device. They think a Japanese game for DSi, Hidden Picture, may have the answer: