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The problem with these pro-iPhone articles is they completely dismiss the DS, or even Nintendo in general. The fact is, the DS is still selling very well - both hardware and software. These are primarily gaming platforms, so they will sell lots more software than the average iPhone/Touch user.

As long as the iPhone/Touch is built with gaming as an afterthought, Nintendo doesn't have a problem. They will always be able to build a superior device (specifically for handheld gaming), and the software to support it.