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Apple has two 'consoles' already. Ipod and Iphone, they aren't that different from psp as technologically anymore. For example Patrick Gunn(EA) said that upcoming Need for Speed undercover is just about the same on iphone as on psp.


Gunn says that EA has "taken full advantage of all of the unique elements... like touch, flick, accelerometer, and motion sensitivity" -- and graphically, the game appears to be roughly on par with a PSP title.


http://www.gamasutra.com/php-bin/news_index.php?story=21187
http://www.apple.com/ipodtouch/features/games.html

Handhelds will be in trouble when mobile phones and mp3 players have more processing power than them.