Are we still discussing this? Sony UK head Ray Maguire says that the iPhone app store games are “snacking games.” Given that the iPhone/Touch have acceptably powerful processors, lots of storage, and nice screens, you could run just about any game the PSP can run and do it with considerable aplomb. But App Store creators know they don’t need to recreate God of War, they just have to make the next Bejeweled.

Sadly, Sony sees this “snacking” market as a threat and an opportunity and Maguire says:

“We’re in a great position to take on the interest in these snacking games and produce them at better quality, lower prices, with lower cost of development – that’s a great business model.

That’s right: you’re failing as a handheld console so sell simpler, dumber games. Good plan.

Image from Navigadget to show how far Sony can wander before seeing that its efforts are fruitless.