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Games would be fun!

[quote=WillSmash] May just be a flight of fancy but I think iPod touch will also differentiate itself from the iPhone by using the 'space' at top and bottom for buttons and a analogue or digital thumb pad for casual gaming. Makes sense that all that power under the hood could be used to launch a PSP DS killer.[/quote]

It would be great to have this feature, but it will be way too expensive to compete with the DS. DS retails for $129 in the US. It is used primarily by kids under 10 years old. I don't see this this market being impacted by a new high-end iPod. As the Wii shows, Nintendo knows their markets.

A device can be a winner without being a killer of another device.

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