The question is what do Sony and Nintendo do about it?

Fixing the PSP (again)

What should Sony be learning from the iPhone? First up, speed of interface – iPhone always connects to the home hotspot while the PSP has to jump through connection hoops, even if you’re swapping between browser, store, RSS or other link. While I don’t like iPhone’s lack of folders, or even just an icon to keep games behind, its still faster than the PSPs media and games menus.

Revamp the network connection to always on (with an option for Off for the panicky user)
Tidy up the net options, have instant links to Facebook and so on
Connectivity, the PSP has a network connection, make it do more – even the Wii does news and weather.

I’ve given up on my Nintendo DS mostly. I can get games for my iPod touch from US$2.99 to US$4.99 that are of similar quality as the same-named titles on the DS for US$19.99. The US$9.99 games tend to be as good as the US$39.99 games on the DS.

The only drawback with iPod touch/iPhone games is that you can delete them, but then, you can lose a DS game card.

Development on iPhone OS isn’t particularly difficult compared to a game system, though you have to work more on performance.