The success of the iPod touch and iPhone as a gaming platform was a bit of a shock to everyone, even Apple.
But now everyone sees the potential, the race is on to see whether it will be Sony or Microsoft that brings their console success to a phone first.
Engadget posted a story last week about a Sony Ericsson phone rumored to run Android 3 as a platform for mobile gaming.
This week Microsoft is talking about Xbox Live and Windows Phone 7, with titles including Castlevania, Halo: Waypoint, Star Wars, Crackdown, and Guitar Hero. An impressive lineup for sure.
There will be over 60 titles available at launch, with new titles appearing weekly. Gamers will be able to access the full power of Xbox Live on their phone, including avatars.
Whether Microsoft will be able to topple iOS as the mobile gaming platform is the new Mac vs. PC debate, but Microsoft at least seems to understand the importance of mobile gaming to the success of Windows Phone 7.