Will the iPhone kill traditional handhelds?

[loadedstatement]

I think most of you guys are severely underestimating the iPhone/iTouch/iPad. Right now there are over 60 million devices worldwide that can access the AppStore. Not everyone buying these devices will want to play games (and some never will), but a lot do play games.

I see some comments saying the AppStore doesn't have developer support. Ubisoft, Sega, Namco-Bandai, PopCap, Electronic Arts, Rockstar Games, Activision, Capcom, TAITO, Freeverse, Gameloft, Konami, Disney, etc all have games on the platform. According to the Game Developers Report, 25% of all game developers are developing for smartphones.

About those saying it doesn't have buttons. Who said a gaming device needs buttons? To be clear, the games all have virtual buttons in the form of touch technology. So you are pressing inputs.

As for graphics, it clearly passes the DS and rivals the PSP. A lot of the games do not push the boundaries of the device, but some developers have and as a result created beautiful games.

So will it kill the competition? Not exactly, but I can assure you it's on Sony and Nintendo's radar. With the iPad coming out in a couple months, the iPhone and iTouch still going strong, the Apple AppStore isn't letting up any time soon. There have already been multiple games to sell millions of copies on the platform. Gameloft just announced over $25 million in profit just from the AppStore.

I'm very surprised to see how many of you don't think it's a factor at all.