Understandable, as those two gadgets are practically identical in every way, especially now that they've decreased the PS3's power consumption. The Ipod Touch still has much better battery life - the PS3 stops working almost immediately after I disconnect the power cable. Also, the new Ipod Touch is rumored to have a built-in camera - with the PS3 it's an extra accessory you would have to buy!
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In a weird, roundabout way, his logic makes sense... but yeah, you owe a cup of coffee of the power cable comment.