Apple’s iPhone is fast becoming a portable gaming console and the traditional gaming console manufacturers are already feeling it encroaching into their territory. Nintendo might still have the edge with their DS but the iPhone is becoming the portable device of choice.

Reggie Fils-Aime, head of Nintendo North America has stated that his company is intrigued with the iPhone as a gaming device but readily dismissed its App Store. He continued by saying a store with 10,000 apps doesn’t not necessarily mean that consumers are getting quality and innovative entertainment.

Even Nintendo President Satoru Iwata is not moved by this development. He stated that mobile phone games have been around for years but Nintendo still managed to be the leader in portable gaming. He has the figures to back this up. There are around 563,000 DS units sold in March alone.

Nintendo does have the stronger handheld gaming device for now but we might see better games for the iPhone in the future. Nintendo better watch out.