Until it gets Phoenix Wright and The World Ends With You, it's not replacing my DS.

...or even then. I'm just a Nintendo fanboy.

I won't be changing my mind about ipod gaming, Iphone's only redeeming quality is it's reliability and a touch screen (which isn't a new thing anymore). Take that away and you have an overpriced phone with a lack of features.

 That's what people are saying.

 The price drop is so huge, you know they're going to recoup costs by locking buyers into a contract. You might be able to still unlock the iPhone, but I don't think they're going to let people get out of the contract without paying some big scratch.

PS360: The N-gage was an ugly PoS with terrible controls, it was expensive and lacked features
The iphone is visually appealing, has both a touch screen and sixaxis, is now competitively priced and full of features.

stranne: I've heard nothing of the sort, but you could be right

Slimebeast: You have hit on the only major barrier to iphone gaming success. I believe that the iphone, unlike the ngage will reach a massive user-base, and that it is only a matter of time before developers jump on that with some really innovative casual games.

famousringo: They are going to recoup costs by opening up the iphone to 3rd party software developers and taking a 30% cut of all money made

$199 for what is essentially a pocket computer/phone is not overpriced. That's cheap. The service contract has been standard since the iPhone debuted, as is standard with most premium phones (or you end up paying a premium price for the phone with no contract).

As for the games, they're going to be distributed and backed up through iTunes. No cartridges, discs, hard media. Sega is already on board (demoed Super Monkey Ball) and I imagine there are plenty of other developers ready to jump on board the most desirable phone since the Motorola Razor.

I'm glad I held off on the Gen 1 iPhone, because this is my next phone when it rolls out in July.

Ok, some info from yesterday's WWDC keynote.

Sega demoed the Super Monkey Ball, 110 levels, 10$ in App Store.
http://kotaku.com/5014624/wwdc-iphone-super-monkey-ball-set-to-launch-with-app-store

Pangea demoed two games: Enigmo, a physics based puzzle game, and Cro-Mag Rally which apparently is controlled by tilting the iPhone. Both games are 9.99$
http://kotaku.com/5014656/pangea-bringing-enigmo-and-cromag-rally-to-iphone

Digital Legends showed Krull, a 3D adventure game that'll be ready by September.
http://kotaku.com/5014668/digital-legends-bring-3d-fantasy-to-the-iphone

It seems that all devs are praising the platform, and porting games to the iPhone seems to be lightning fast. According to Kotaku, Krull was ported in 4 days, and Enigmo and Cor-Mag Rally took 3 days to port, though they were ported from Mac OS X.

In addition to those, some interesting apps were shown, such as a medical imaging software for checking CT and PET scans. Check http://www.popularmechanics.com/blogs/technology_news/4266929.html for more detail if you're not overly allergic for Apple fanboyism ;)

Majority of games needs buttons. Touch buttons won't work.

This is going to force Nintendo & Sony to fast-track proper online digital stores for the PSP & DS (PSP already has some stuff, right?).

Apple are onto a good thing, and making all the right moves. $199 is VERY cheap - isn't that pretty much what a PSP retails for? And iPhone >>> PSP IMO.

Developing software for this baby is just dead easy, and there is going to be a flood of excellent applications to the iPhone in no time at all.

I'll seriously consider getting one when it launches in Australia - music, movies, apps, games, portable web browsing, online store... bring it on!

I still think it is too expensive and I have no interest in playing without buttons and just using the motion senser, how well is that going to work on a bus?

 Sounds a lot like their old iTunes model.

 Except they didn't make money on iTunes for the first few years. They ran it near cost as a service to help sell iPods, where they actually made the money.  This iPhone is way cheaper than iPods were in those days, despite having far more complicated technology in them.

So if the money isn't in the store, and isn't in the hardware...