lol, why would I pay 300 dollars for an iPhone when I can get a PSP for 130, AND I can play God of War and Crisis Core Final Fantasy VII.

The Iphone is running a pretty Fat GPU A powerVR none the less.
Can you Say Dreamcast Soul Calibur Level of Grahics!!!
Ok Obviously I am waiting for the GPS 2nd gen Iphone but what a future of gaming to come!!!!!
Bring it on Apple!!!

I'll say it again...one word...

Interface

*EDIT*
I don't have an iPhone, but I have an iPod Touch. I just can't imagine trying to game on it with my fingers covering half the screen.

No thanks i'll pass!

Come on now, let's be realistic the only games that would be able to run on iphone are flash games, no buttons, no anolog sticks touch screen can only do so much. And what studios does apple own because Ihave never heard of an apple game studio....DS/PSP will always dominate the gaming market because I just don't see soccer mom's lining up to pay $400 for an Iphone for their teenagers...

Nope!

It has no buttons to smash that you need in a lot of games :P

Yeah! The iPhone will totally own the PSP! In fact, I'm playing the incredible God of War on my iPhone right no--

Oh wait.

Sorry, but the multi-touch interface just doesn't serve well for traditional games. Ever tried an emulator on the iPhone? Ugh. Just...ugh.

All the iPhone has on the PSP is an (arguably) prettier screen and a lot more memory. The touch screen is cool, but not for most games. Even the DS has SOME standard buttons and a D-Pad.

i dont have an iphone but i have an ipod touch. i guess it has the same specs and its cheaper.

I have a hacked ipod touch and the nes and ps1 emulator have on screen buttons. They actually work pretty well. Besides that the accelerometer will make for interesting games. I can see golfing games working brilliantly with the touch screen, hook shots slices etc. Bowling, just maybe not shooters, although a sniper game might work. Just need to think outside the box. No need to get the iphone with contract just grab the ipod touch instead. Its a great mp3 player its light and thin and goes everywhere. The psp is still too big to really be pocket portable for music and video. I know I have had 2. I dont see the iphone/pod as a competitor for gaming handhelds but Devs will definately make games for it and people will buy them. These will be the cellophone gamers not the console gamers, totally casual transit slaves.

Its the funny story of the week segment....if the iphone can outsell the game gear then im impress. but for now ....WHATEVA

dont put your nose in where it dont belong......apple go fight microcrap

this is nice bonus for those of us that already have iPhones/iPod touches. This may even bring me to consider unhacking my iPod touch.

You can't compare specs by looking at numbers...
Otherwise you could do this.
>
>
>
>
>
>
-----------iPhone-----------N intendo Wii
CPU-------620MHz-----------72 9 MHz
GPU-------412MHz-----------24 3 MHz
Memory---128MB RAM---------88MB RAM
Storage---8to16GB----------51 2 MB

Ever wonder how Nintendo are making $50 every single console sold?

Maybe the DS but not the PSP.
PSP keeps growing constantly and is upgraded while with the Iphone you need to buy a new phone every time in order to get new features.
PSP is getting a camera, it can run itunes, you can already convert your PSP into an iphone in features and so forth, not to mention PSP already has a phone built in Skype which can be used to contact multiple things computers, land lines, and cellphones and is $36/year unlimited.
Apple has a long way to go in video games to be accepted by gamers but other than that it's still a great product.
I'd still would recommend a PSP over an iphone any day.
I'm still a fan of Apple but it's not a game machine no matter what anyone tells you.