Innovations for Learning just announced a blue GameBoy-like handheld computer designed for schools. It's got directional buttons, a few face buttons, a 2.5-inch LCD, USB sync, SD card storage, AC/USB charging, and a 3.5-hour battery life. Inside the teachermate is a "complete reading and math curriculum that is aligned with all of the major reading and math programs," which means it can help substitute the learning a K-2 school student already receives.
They're a non-profit company, which means they only charge the cost of manufacturing the device, US$50, but the reading and math programs cost US$20 per student. The initial rollout will be at 500 Chicago elementary schools. We'll have a quick hands-on of this later—not with an actual K-2 student, but just someone with a K-2 student's intellect (me). [Teachermate]