Apple has been considered a contender as of late in the handheld market because of both the iTouch and the iPhone. Seems they have gotten to the point to where they feel confident enough to not only talk down on the PSP, but also the Nintendo DS.
According to Apple’s Marketing VP Phil Schiller once a consumer plays a iTouch/iPhone title they don’t feel the need to turn to a PSP or DS anymore for gaming, that in fact Apple’s devices make both handhelds look less “cool”. He then goes on to say that the prices of the games are too high on both handhelds.
Here is the direct quote for those interested:
When [DS and PSP] came out, they seemed so cool. But once you play a game on the iPod touch, you think ‘hey, these things aren’t so cool any more…
We’re talking about 25, 30, 40 dollars a title. The kids can’t afford those titles. Worse isn’t the price, it’s the buying experience.
[Source]