Whether you think the touch screen is suited for games doesn't matter because games are clearly a BIG deal on the touch and the iPhone. Otherwise there wouldn't be 20K games in the app store and companies like iD, EA, Capcom and LucasArts wouldn't be investing in developing iPod games. Saying that a touch screen is completely unsuited to gaming is just ridiculous. Some games will work better, some won't and some will have to be creatively rewritten. Just look at Pangea's games. Virtually every game they have on the iPhone was written for the Mac before the iPhone was even a concept. They were enjoying a "modest' success. (They being mostly one guy.) The iPhone came out, he ported all his games and now he is rolling in money. Just check out Pangea's website if you want to see some fascinating insight into games on the iPhone/iPod touch.

In two years Apple has 50 million people in its user base and they haven't even started selling in China and they haven't even started branching out into different product lines like a tablet or enabling games on AppleTV. My 12 year old son just bought his first iPod touch after saving money for a year. Guess what? None of his friends want a Nintendo DS for Christmas anymore.

Sony and Nintendo should be afraid. Very afraid.