via www.gamasutra.com/

The second thing is capability. The iPhone, from a performance standpoint, is pretty close to a PSP, but unlike the PSP, it’s got a touchscreen, accelerometers, a camera, it’s location-aware, it’s got all of your media on it, it’s awake with you, it’s always on, and it’s always connected to the network. So if you think about the types of games and entertainment experiences that you can build on a platform like that, it’s got to get pretty exciting pretty quickly.

Neil Young, a former EA Developer about why he left EA to form a new company that concentrates on iPhone (and beyond) game development.