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a12331 said:
Does this include the ipod touch

Yes, both run the same iPhone OS 2.0 so at least in theory, both will be able to run the same games. From the article:

"[Sega of America's president] Jeffery said he believes a certain number of consumers will buy the iPod Touch primarily as a gaming device, pitting it against established portable gaming handhelds like the Nintendo DS and the Sony PlayStation Portable."

I don't know if that's really the case, 'cause the iPod touch is so much more expensive than DS or PSP, but that's his opinion. By the way, does anybody know how much the iPod touch has sold? I've only seen figures of the iPhone...