I had a bit of a chuckle reading The Apple Blog's commentary...

Nintendo and Sony "Freaking Out" Over Apple iPhone

...of a Trip Hawkins quote pulled from this Venture Beat item...

Late to the iPhone, Trip Hawkins' Digital Chocolate falls in love with it

It’s by far our most effective platform. We make as much money with these games on one device as we do putting a game on 100 different cell phone platforms. Between the iPod Touch and the iPhone, I think the platform is freaking out Sony and Nintendo. Apple has sold 30 million units so far and it has created tremendous awareness. It has taken ground all over the world. But it has only penetrated one half of one percent of its total market.

Quite honestly, I don't think the Sony PSP has been "in the game" in a couple of years (essentially since Nintendogs was released for the original Nintendo DS in 2005). The DS, DS Lite, and DSi, however, are definitely still in the game by providing generally rich game play and controls for users and providing a larger gross margin per game unit sold for developers.

The iPhone/iPod touch wins in the sheer number and variety of not just games but "entertainment" apps like the hits Koi Pond and iFart Mobile.