I don't know, at $399 it's cheaper than a PS3 and about the same price as a 360 (not to mention cheaper than many other new phones). I am certainly considering it now, much more so than when it was $499/$599. It will depend on how much money I will have left over this year. If not this iPhone, I will have a good hard look on the iPhone nano whenever it's out.
fazz,
You will get a monthly bill no matter what phone you use. You will also have to pay for every single game you want to play on your game console. I don't think this is a special issue with the iPhone.
El_Duderino,
Looking just at the form factor (not the games, which are the biggest pro for the PSP), there are worlds between the iPhone and the PSP. The iPhone is 3 times smaller and 2 times lighter than the PSP.
Hardcore gaming is a bubble economy blown up by Microsoft's $7 $6 billion losses.
