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Other than what you guys already mentioned, I think he's missing a couple basic points:

1. The iPhone is $400 right now. Most likely, they'll try to bring about lower cost versions of the iPhone soon.

2. The iPhone is currently the best portable media device. Adding games to it makes it possible to have everything: movies, music, games, directions, etc. and most importantly a phone. Even with Skype, the PSP cannot compete with that except as a low cost, less cool alternative.

I'm not saying he's wrong, I just think he should have at least commented on those areas.