You don't buy an Iphone to game.
You buy it as a phone and internet surfing portable and then you discover gaming on it thats why the price comparison is meaningless...
The Iphone is a phone that does gaming on top for almost free, if you look at it that way the price comparison isn't so bad anymore...
The people they will mostly attract are those new or coming back to gaming, the same way Nintendo did with the Wii.
Apple won't steal current DS and PSP customers, they will steal the future ones...
In that sense they are not so much competing with the DS as with the successor of the DS...








