Simple market share decides where the third party games go. Nintendo wouldn't have been able to secure the next Kingdom Hearts for 3DS or the Metal Gear Solid series if the PSP had a bigger piece of the pie. Not to mention that Sony's attempt at digital distribution with the PSP Go failed. Apple has the apps/digital distribution market locked, Nintendo is king of the packaged software. I'm sure that Nintendo is pissed that the iPod and iPhone are more popular than the DS systems, but overall they're in a great position. Apple won't challenge Nintendo's packaged software business and Nintendo has no chance in hell of challenging Apple when it comes to digital distribution. I believe that both of those markets can co-exist for at least another generation. Now Sony has to challenge either Nintendo or Apple to gain any sort of foothold in the handheld market.