Guessing game

The iPod touch is their gaming device and iPod and the iPhone combined are taking the game developer community by storm already.
The iPod is a much more capable device than the PSP, a 10" screen wouldn't be a portable gaming machine, it'll be most likely a larger style iPod touch designed for web browsing and ebooks.

I don't think they're going with the netbook flow, though. That doesn't make sense for apple. (netbooks are cheaply designed, made to be disposed of, etc) macbook air is already their super-portable-style notebook
and that's only like $1300.
 
How can you even compare the iPhone games to a PSP.
Common man, they not even in the same legue. Plus to boot the iPhone games have next to zero retention. Without a physical inputdevice (like thumbsticks) and decent processing grunt behind it, it doesnt have a chance.

The App Store stuff is like 99% novelty apps, and 1% actualy useful stuff.
 
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