If Microsoft created a handheld...

[The Anarchyz]

Well, the 1st two examples are done with traditional controlling on the touchscreen which i mentioned earlier in this thread...

--"PSP can have only games controlled traditionaly, and the rest can only have touchscreen games (unless they use multitouch to simulate traditional), so they're covering only one part of the market..."--

Of course, the multitouch needs to really simulate the controls, especially when more than 2 buttons need to be pressed (in the Megaman 2 video i didn't see once using the jump-shoot while advancing which takes B+A+--> at the same time, so i don't know if it's possible... or Megaman X3 when you use the combined dash-jump-shoot-advance with repetitions, that will be good to see in touchscreen-pads)...

Of course, the "traditional-on-touchscreen" solution takes away screen (not a problem for old games, but for a lot of games it's not good), and that's a disadvantage, but if they're taking over they need to find a solution for this, especially for the iPhone...

If Nintendo creates a DSPhone HD (or something like that) i think they will use the Nokia N97/N900 method: Touchscreen and hidden keyboard... That would be a great way to enter the phone market...

About the physical format, we are talking about the whole world and the blue ocean, a lot of people don't use the direct 2G/3G/3.5G connection because of the cost, the built-in WiFi helps and all the platforms are testing the waters, of course, physical is still winning even when it is an UMD (god i hate that format)... But like i said, i think this is only a temporal problem...