One thing a lot of people seem to be missing here is that a significant demographic of the handheld market is children. If you don't include this demographic in your marketing strategies, you will not rise to the levels of DS or Gameboy.

I don't see Apple being able to successfully penetrate this market. I also don't see parents buying their children Apple devices (iPod Touch or iPhone) to be used as a gaming device.

Lol @ Apple, Both Sony AND Nintendo? Please...

Their handheld will probably cost $250 and we should all get second jobs so we can strive to purchase it....

I think Apple will move towards portable gaming because Ipod sales aren't growing anymore (everybody and their grandmother has a Ipod). They need to find a way to justify the upgrade.

I lol'd at the bolded cause its so freaking true, once i saw this 2 year old (YES A 2 YEAR OLD KID) with what looked like an 80giger froma apple. god...wtf?

For those of your replying with

"this guy is full of shit"

1 He's the marketing rep, he's meant to be positive about the product

2 Everything he said is actually true, the Iphone is very powerful, and has a good control interface. The App store is very convenient

3 Yes, you are right that for the present, the Iphone has a low attach ratio

4 But that doesn't matter as much as it would for the PS3/PSP/360 - because the Iphone will have higher sales, profit is made on hardware, and there are many other revenue sources for Apple - namely Apps, songs, tv/movies

5 Apple will not force anyone out of the business, but are going for market expansion

Also, why are you all responding as if he said "Apple is bring out a portable games machine and a home console" ??

He's talking about gaming on the Iphone and Ipod Touch

Does anybody know anybody who's bought a game for over $10? I don't even know anyone who's bought an ipod touch game, they all play the demos all the time... that's why nintnendo doesn't release demos, casual gamers don't care - they'll just play the demo over and over till they get tired and get a new demo.

I disagree.

Lol, they wish they were on the same level as Nintendo.

Are there any games for sale at over $10? I probably should know this, but I don't so that's a genuine question. My impression is that a few games go for $9.99, but most are well below that. Regarding the demos, you're right, but I guess it has more to do with the devs not knowing how to make demos. If your game sucks (as most games in the AppStore do), making a demo is only going to show that it's not worth paying anything. I've only been enticed to buy the full version once, and that was for GalCon which is one of the best games in the AppStore. But the way I see the situation now is that the quality of the games is not high enough to benefit from having demos.

Also, for the record, I have bought several games at all price points.