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superchunk said:

No it won't.

iPhone is a phone first and foremost. Its gaming capabilities are now and will always be leagues behind the current handhelds in terms of graphics, game selection (latest and greatest vs really old ports or gimped ports), and above all controls.

I don't know if I agree with that line.  I rarely use my iPhone as a phone, I probably use less than 10 minutes of phone time a month and maybe 15 text messages a month, I use it more as a toy and useful gadget.  I'm constantly playing random games on it or using any of the various really useful apps on it.

Saying the iPhone will always be leagues behind things like the DS and PSP is incredibly short sighted.  Mobile gmaing in its current state is still really new and has A LOT of room to grow.  Better and better games are constantly coming out and I think in the next five years mobile devices like the iPhone will easily rival or flat out beat the DS and PSP  of that time if they don't evolve.

Saying the iPhone will always be leagues behind the DS is pretty much the same as people that said 30 years ago that home consoles would never beat out the arcade experience or that gaming would even become that big of a thing.

I don't think I would call the iPhone a handheld gaming device either, I think it's just better to call it a device.