Spec-wise, the iPhone annihilates the PSP. But, due to OS size, developer budgets, and platform time on the market (remember that the App Store released only ~15 months ago), the iPhone lags graphically behind the PSP and will for quite some time. In the future, will a developer spend the money and try to graphically compete with a PSP game? Who knows. Does it really matter? I doubt it.

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