So many people and "analysts" saying how iPhone eating up the handheld gaming pie.

Yet, I see it as the opposite. iPhone is a bridge device that turns non-gamers into gamers.

Let's picture this for a moment.

You don't play video games. You don't care if DS/PSP exist.

Then you get your shiny iPhone and eventually downloaded some "flash" games. (By "flash", I meant small games that cost a buck or 2, usually you can get the same on your computer for free.)

You eventually become more interested in video games or not at all.

So, in the case where you've fallen for video games, you'd want more than just "flash" games.

Naturally, you'll look for a gaming device that plays "full retail" games. You'll either pick up a DS or PSP from that point and recieve your gamer badge.

Meanwhile, people are claiming iPhone taking away gamers. That's like saying, people downgrading the hobby?

^This's the same kind of argument Sony execs used to say for a while: "Thanks to Wii (DS) consumers eventually will 'upgrade' to PS3 (PSP)", - that's how they spin it.

iPhone is a phone first.
The Wii is a gaming device first.

Totally agree. And that means: dumb argument (no ofense to OP)

That makes no sense. If "just flash games" were good enough to get them into gaming then it's probably gonna be a while before flash games are no longer good enough for them, by then the iphone and it's iterations will already be offering games that are more and more like "full retail" games.

Now I'm not someone who believes in the iphone as a big platform for games, I think it's role as a phone and a computer compromises it's role as a games device, but for those who do find it "good enough" to the point that it gets them into games, it's not gonna suddenly stop being "good enough".

well there is the problem of the price barrier... Iphone aps are not a big jum... a DS+ games is.

and no the Iphone is not expensive, it's an everyday too and a fashion item, you can't compare it as the price you pay is not for the gaming part.

And yet every other statistics shows PSP and DS loses market share.

I love my iphone and the games and apps it provides. But i'll never pick up a handheld because its limited to just playing games. While the iphone/ipod can do so much more, and have so many more featured apps that can turn it into basicly anything you want.

Well of course they lose market share - between them they had 100% before :P

The argument is that they don't lose the amount of people buyign the systems.

It is certainly true that some people who would otherwise have bought DS/PSP games and hardware

It is also true that some people would get into gaming due to the ease of getting into it through the Iphone, and that some of these people will go on to buy other consoles/portables that they wouldn't have

as to the size of these two groups? Who knows