and a smite to you leilei...
i think that the way the DS is it doesnt neccesarily need games with good graphics, people play handheld games for the gameplay, they play console and pc games for the cutting-edge graphics. the DS is designed to be a gameplay device, whereas the psp is trying to knock the DS out of the market by having better graphics. i played the port of resident evil on the DS, that was simultaneously 3d and as painful as hell to play, whereas games like advance wars (which is 2d) is very fun.
its been nintendos mentality all along to never really go into direct competition with other brands, but intead to find a new battleground where they are the only contenders. by making the DS not as powerful as the psp but instead a different kind of experience they have managed to expertly sidestep sony's attempt to shunt them out of the market. the DS and Wii are taking massive chunks of sony's market share and due to the late release fo the console and its high price it is being pushed aside in europe and america by the 360.
interesting fact: it would be an incredibe thing for anybody on this forum to have made less money than sony's gamin division in 2006, seeing as they LOST around $2 billion dollars...