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Apple - Nintendo DS is the past, not powerful enough
“There are already so many games [for the iPhone and iPod Touch], and as we look at it, to us, it really seems this is the future of gameplay. Whereas a lot of these devices [Nintendo DS and Sony PSP] are more in the past. The computer power and the 3D graphic power here is significantly greater than what you have here [picks up DS]. So, this allows people to do significantly higher quality games.” - Greg Joswiak, Apple’s vice president of iPod and iPhone Product Marketing
That’s it, Mr. Joswiak…you’ve finally discovered the key to beating Nintendo! A power powerful platform with better 3d capabilities. That’s clearly working for Sony in the portable space, and Microsoft/Sony in the console space.