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I bought my Itouch about 3months ago. before my purchase, I was thinking of getting a regular Ipod nano and then spending some more on either a psp or a ds and I am kinda glad I didn't.

The games may not be mega awesome, like the psp games or ds, but they are still very much fun to play and mess about with. The fact that you are literally playing peanuts for these games means you won't mind paying a little money to test a game.

I have downloaded and played over 40 games now in my ITouch and yes, it is that good of a casual gaming device. It also has this mmo called Aurora Feint, and it is the first time i have been stuck playing and enjoying an mmo.

It has 3d graphics, tilt controls, touch screen, wi-fi connectivity, you can play custom soundtracks and a huge library of games that are dirt cheap or free. I can see a lot of reasons why psp and ds should be worried.

Note, that this is just the games applications you can do good with, not taking into account the hundreds of other cool apps you can download such as; google earth, Remote, Ifooty, Movies etc.