Sony has always attempted to distance itself from Nintendo's DS, reminding consumers that the PSP is more than a gaming machine: it's also a portable media player. According to a Prudential analyst, Jesse Tortora, Apple may want to head into the handheld game battle, with iPod in hand. The iPod has successfully removed Sony's dominance in portable music players, after Sony failed to progress its Walkman and Connect properties. If Apple joins the portable gaming scene, it will be the portable media player that also happens to play video games. "We think the video game market represents a distinct possibility for Apple, especially considering that it recently announced the availability of video games for its iPod through its iTunes store," the analyst said.

With an ever increasing supply of movies and television shows on iTunes, and a mass market acceptance of Apple design (look at Nintendo's success with the DS Lite, a product that looks to mimic Apple's signature style), a widescreen gaming iPod may sway over the hearts of PSP gamers and non-gamers alike. Certainly, many have criticized Sony's lack of a hard drive in the PSP, and sometimes poor media performance. If Apple did come into market with a media and games machine, do you think Sony would have something to be afraid of?

[Via GameDaily]