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They really have. Even my teenager who used to take his PSP with him everywhere told me just today how stupid the PSP was... He told me his phone does more than it ever did. I think that attitude is pretty common.

While I agree that phones have come a long way and are far more useful but playing games on your phone is still not optimal IMHO. I need actual controls.

But yeah Shu is dead on phones have greatly impacted the handheld market.