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I see the iPhone like a handheld PC.
I think that because of that DS and iPhone aren't really competing directly cause they have different goals ( althought everyone n the entertainment business is competing with others because the consumer money is finite ).
It is the same difference between computer gaming and videogames.



 “In the entertainment business, there are only heaven and hell, and nothing in between and as soon as our customers bore of our products, we will crash.”  Hiroshi Yamauchi

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