iPhone Stomps Nintendo and Sony ~ OS X Fanatics 
There is no doubt that the iPhone is what keeps Ninendo execs up late at night, certainly moreso than Sony and the PSP. And what has to have them most worried is the amount of excitement from the developer community for the iPhone. That said, I do think there is a big difference in what I’ve seen in the immersiveness of PSP and DS games compared to the iPhone. Not to say it won’t get there with iPhone, but so far the games are vastly different.
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