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NiKKoM said:
No but with games like GTA china town wars, Assassins Creed II, Broken Sword, Brothers in Arms 2, Need for Speed Shift, NOVA, Secret of Monkey Island SE and more for less then 9.99$ it's becoming a serious alternative... and i'm thinking that Sony and Nintendo are looking at how the Appstore works..

^This!

I got my Itouch 32gb last week and have already had way more fun on it than I ever did on my PSP or DSi, theres apps for everything and the games although loads of rubbish ones there are also some fantastic ones and all much much cheaper than psp or ds prices.

The motion controls in the iphont/touch work superbly, racing games for example are a joy to play using tilt.

 

I'm very impressed with the Iphone/Touch as a gaming device so far and am amazed at how many games are being released for it. the fingerprints are another story though lol