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Nintedo's DS dual screen totally turned me off. The Nokia screen is way to tiny for me. The PSP, on the other hand, has a nicely sized screen, with awsome graphics, and a reported 10+ hour game life.
In the end, I would like to buy the PSP because it has all the things I would want in a handheld (especially with the anticipated release of metal gear acid).
But ultimately I believe the handheld wars will be decided by the price tags. If sony is smart enough, it may out sell nintendo if it uses the plan microsoft used when it first launched the xbox.
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