"What it means for developers is that their development costs will be going up," Meloni told the Standard. "Currently, it can take an iPhone game developer about 2-4 weeks, sometimes less, to get an app out, with development costs being minimal." That could change if additional features have to be built out and tested for each game, diminishing the lure of the iPhone relative to other platforms.

For now, though, Nintendo execs would be kidding themselves to ignore the threat the iPhone poses. Nintendo has a strong product with the DS and DSi, but Apple's portable platform has opened up the gaming market in ways that industry heavyweights are only now beginning to appreciate.