With Apple unleashing the iPhone upon the masses and already confirming support from developers such as Square Enix, could it be that the new format on the block could very well sweep the rug from under the competition? Should Sony and Nintendo be quivering in their boots about the PlayStation Portable and Nintendo DS potentially becoming obsolete?

Well, it is a subject that was recently broached by the folk over at MTV. Should the portable video game Industry really stand up and take notice of the iPhone?

Speaking with Nintendo of America’s President, Reggie Fils-Aime, it was mentioned how the iPhone actually launched with more games than both the Nintendo DS and PlayStation Portable did at their respective launches, showing that Apple was being more aggressive with the new device than ever before, despite the increased cost of the unit that may put the average consumer off. Fils-Aime had this to say on the matter:

“From our standpoint, we are aware of what the iPhone is doing. We certainly monitor it. But just like in the home console space we’re focused on doing what it is we do well. Installed based by next march of 100 million [DS] units — and that’s a worldwide number. In the U.S. we’re at 20 million. And so we’ve got a large installed base that we’re looking to drive even further and to sell software into. That’s our focus. We’ll see what happens with the iPhone but it is not something that will make us change our direction.”

As for Sony’s take on the matter, Senior Marketing Manager for the PlayStation Portable, John Koller, gave his thoughts on whether or not the iPhone can become a true gaming competitor:

“I think indirectly it’s a competitor, but it’s indirectly just like the Zune is and the DS is to a degree because it doesn’t offer everything that the PSP does. In terms of the iPhone, it’s rooted in telephony, right? It’s in the name. The person is purchasing it primarily as a phone first and foremost, whereas a person buying a PSP is buying it first and foremost for games — over 70% buy it [PSP] just for games. So it’s a little bit of a different consumer base.

“Not saying we’re not looking at it intently because we are. The amount of VC [Venture Capital] money that’s pouring in, you’ve gotta actually look at it. You’ve gotta see what they’re doing. Most analysts that we talk to say that the competition for iPhone is actually against DS and that type of gameplay. PSP is much more of a rich experience in terms of console gaming on the go. Not that we’re not looking at it, but I think there’s some other ways to kind of parse that discussion.”

But what are your thoughts on the matter? Should Sony and Nintendo be wary of the threat posed by Apple’s iPhone? Share your opinions by posting below…