Iwata has revealed that a new Zelda game is due out on the DS later this year. The Legend of Zelda: The Phantom Hourglass has been made by the people responsible for the sublime Wind Waker and will focus action on the touch screen, requiring gamers to draw things. It will also be in the cel shaded style of Wind Waker and use the top screen for mostly maps.

The touch screen will also be used for puzzles and for directing your trusty boomerang. It seems that Navi will make a reappearance also and the short video also showed a battle against a squid-like enemy.

More news as we get it, stick with C3.