The processing power and graphics capabilities of the new generation of smartphones are eating into the video games market dominated by Nintendo and Sony, according to The Sunday Tribune.

“With casual gaming dominating the market, the iPhone is starting to give the traditional hand-held DS and PSP models a run for their money and will likely continue into the future,” according to a recent report by ISuppli, a research company.

And to add to the console’s woes, the iPad and Google’s Android devices are also likely to dent sales for the foreseeable future. The multi-purpose capabilities of mobile phones are making them the choice for young gamers.

“In some countries the first digital entertainment device that people there might touch is a mobile phone rather than a PC,” said Microsoft executive, Chris Lewis.

The software giant doesn’t have a dedicated hand-held device but is aiming to overcome this by putting 50 games on the Windows Phone 7 operating system which will allow them to be played on smartphones.


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