Comment At least two different markets (Score 1) 281
The iPhone could be a real threat to the DS and PSP, but even within the casual gaming space, handheld and console gaming are two different experiences. There's a reason movie tickets and big HDTVs are selling great, people love huge screens. Also, the all-in-one device concept works for the iPhone because for handhelds compactness and convenience is everything, but there's enough space in the house under the TV for multiple devices. People have been predicting the death of game consoles since the early 90s when home PC sales took off, but now most PC game customers and developers have migrated to consoles. Playing both movies and games helped PS2 but it didn't help PS3. If the two-in-one concept works again, it'll probably come from a combined OnLive and Netflix device or service which won't come from Apple. Finally, Apple TV bombed.
In summary, Apple may very well conquer a big swath of handheld gaming, but there's no sign that they're about to enter, much less conquer, console gaming.