It's irrelevant that an IPod plays games, it's a music machine. In the public eye a cellphone isn't a gaming machine. There a clear divides in the minds of the public.
If say a parent goes to Best buy thinking "I'm going to buy a videogame console for my 17 year old" they don't look at the Iphone. They aren't going to choose between a PSP and a 360. Clearly one is a handheld gaming device and the other is a home console, and are seperated as such in the store. Conversely, they aren't going to the videogame section in best buy, see that the wii, PS3, and 360 are all right next to each other and say "I guess I'll choose between a 360 and a PS3, the wii just isn't a home console." For a consumer, they are choosing between the 3 current gen consoles that compete directly with one another for shelf space at stores that sell videogames.
Iphones don't compete with PSP and DS, you don't see them sold right next to actual hand hand gaming machines, and they don't compete for shelf space. A store doesn't decide how many Iphones to buy in relation to PSPs based on how they sell against one another, nor do they decide which will get more shelf space based on which is moving more software and making them a profit.
But that is exactly what happens with wii, PS3 and 360. They reside in the same "aisle" if you will at wal-mart, and the store managers are deciding how many PS3s to purchase in relation to wiis, and which one they are going to give the most shelf space, based on which one is moving the most hardware and software for their business. Thusly, directly competing.
You can find me on facebook as Markus Van Rijn, if you friend me just mention you're from VGchartz and who you are here.
