iPhone takes a bite out of Nintendo, Sony game share

Better graphics and more processing power means smartphones are muscling out traditional video game companies.

Sales of game-capable mobile phones like the iPhone and Google's Android devices are set to rise this year, while those of handheld gaming consoles are expected to level out or drop significantly. As Apple and other phone manufacturers add more bells and whistles to their devices, young people are opting more and more for multi-purpose gadgets rather than single-use products like Sony’s PSP and Nintendo’s DS. Those two companies have long dominated the video game market. Sales of the DS dropped 47 per cent between April and June of this year.