Both Sony and Nintendo are trying to captivate non-gamers (those who don't play - or at least don't buy - games). The PSP is capable of displaying photos, playing mp3s and movies. The DS tries to reach new audiences through more easy-to-use hardware and software.
but how do traditional gamers perceive this move from Nintendo? A good notion is at joystiq.com (don't forget to read the comments)
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