Apparently Apple's big hardware guy, Greg Joswiak (aka "Jaws"), thinks that the iPhone is superior to, and will replace, both the DS and PSP (article:
Apple Exec: Nintendo DS, Sony PSP Are 'In the Past').
But it's not because the iPhone has more functionality or better graphics. It's because the Apple iStore distribution method is something that neither Sony or Nintendo have for their gaming platforms. Having more games on demand and getting them faster (and cheaper) is supposedly the key to success.
So, does anyone here have a DS or PSP that's gathering dust since they got an iPhone?