The iPhone is completely different from pervious cell phones.  It's a game changer.  I'm not sure I understand the point you are trying to make. 

Let me ask you this - in 5-10 years do you think the majority of mobile gaming will be done on devices like the psp and ds?

Well shoot. You got me! My argument IS bullshit. The PSP is selling like hotcakes and nobody is playing games on their iPhones or iPod Touches. You Win!

/sarcasm

The PSP is not going to be a success just because you want it to be. It's best days are behind it. Accept it and move on.

Yahoo is doing Sony a favor as far as I'm concerned ^_^ Everyone's upset for undershooting they're goals, well if Yahoo say they're going to fail, and they succeed, they'll look better!!! Way to go yahoo!

On topic... sort of... Mobile phone gaming sucks ass ;/ Unless they get battery life to be insanely better, I would never game on my phone. I kind of need that... for calling people >_>;

When it comes to selling hardware it is but not at the moment.  But when you look at software sales the 360 is doing way better 61 million sellers compared to 24.  Overall the 360 is doing a lot better then the PSP.

@bdbdbd (in your reply to me):
True, but PSP still generates more than decent profit on HW, some profit particularly on biggest games titles and almost no profit anymore on UMD movies, so what's most likely is disappearance of UMD movies, as you mentioned, reduction of shelf space for games bar during best titles launches and enough shelf space for PSP consoles as long as HW is profitable enough, and currently PSP HW still sells well, as absolute numbers.
Despite numbers and shares, anyway, this Xmas in Italy I saw a lot of stores giving front row and more of the extra space dynamically allocated to special offers to PS3 bundles, followed by Wii bundles and in the last row XB360 bundles, while both portable consoles, DS and PSP, were relegated behind not portable ones despite the good numbers for one and the incredible ones for the other.
Games shelves are a bloody mess both in megastores and in specialized videogames store like EBGames.
Maybe it has something to do with increased BD sales, that make resellers like PS3 a little more than it should be for consoles and games numbers alone added to confidence in the appeal the PS brand still has and the fact that for Xmas buyers are more likely than in others periods to buy costly items.
OTOH Wii was quite slow to gain acceptance by resellers, but its huge attach rate either for games and for a lot of HW add-ons is slowly changing their mind.

@Ender: Your question was logically flawed and would need to be defined better. Also, could you explain how iPhone is different and a game changer. Only difference i can tell is, that it has Apple brand.

Anyway, devices like DS aren't going to be the majority for mobile gaming in 5-10 years. It's not that even today. Devices like PSP and smartphones are what the majority do and will play their games with.
The DS example was like asking will devices like iPod be the majority people will listen music in 5-10 years, and the original question was like will people play their games with devices like Wii, 360 and PS3.

@Alby: That differs alot regionally/store specifically. It doesn't mean all the stores would pull it off the shelves. Think about GC, all the game stores had it available, but it (and its games) were hard to find from the markets. I was thinking "pulling off the shelves" more like stores individually to start pulling it off.

They're too busy Kissing MSs'

Yahoo isn't doing well themselves. Perhaps they need to keep others in the flames to avoid scrutiny into their own outlook lol.

1)  I don't think you understand what the word logic means.

2)  Do you have a link for those mobile gaming figures?

3)  After rereading your posts I have no idea what point you are trying to make.