The figurative gauntlet was thrown at Apple's recent Let's Rock event in San Francisco. According to Steve Jobs, the iPod Touch is "the best portable device for playing games on".

That's a grand statement right there, but then again, if you're selling something you wouldn't be touting it as the second-, third-, or whatever-best gaming device, now would you?

To back it up, Phil Schiller, senior VP of product marketing, demoed three iPod Touch games. Two have already been released (Real Soccer 2009 and Spore Origins), with the last being the upcoming Need For Speed: Undercover from EA.

Apple gaming hasn't really caught on that much, but it looks like this time Jobs and company are really putting a lot behind marketing the iPod Touch as a gaming device. The iPod Touch certainly looks like it packs some considerable graphical power under its hood. Then again, the lack of a proper d-pad could throw a wrench into their campaign.

So, what do you guys think? Does the iPod Touch have what it takes to go up against the PSP and DS?

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• Forbes: Apple may soon overtake Nintendo in handheld gaming market