Came across this here at Gizmodo, apparently the iPhone is more powerful than a NDS, and comparable to the PSP, however there is no decent control input, no D pad, no buttons, no shoulderbuttons.
If you've played the emulators on the iPhone installer then you would know, iPhone touch screen only games just don't control properly. Maybe they need to use tilt to control for motion and 1 or 2 buttons on screen, but unless there is some clip on control pad, iPhone isn't that viable as a gaming console.
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