Yes the iphone isn't as good at gaming as their mobile gaming competitors but to simply dismiss them is akin to burying you head in the ground to blot out the noise.
Apple is being tremendously successful in the mobile sector and that WILL translate into success in the gaming segment of that market. Its not entirely comparable due to the completely different business models they have to Nintendo and Sony but in the future they may well become direct competition. Especially considering both Nintendo and Sony now have the capacity to digitally distribute games.
But yes, its damn funny that they think the DS and PSP are overpriced. But to underestimate them would be stupid because as a company they're now very formidable (and have a very large war chest).
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