iOS has tons of games coming out every hour. Sleep for 8 hrs and theres goodies waiting in the morning. Theres also IAP sales and price drops. You will be spoilt for content. PSP with tactile feedback is better for racing titles and some action titles but that's it. Takes a lot more hours before your hands start paining on a touchscreen, but they still do. At ur budget psp or ipod4 looks like the best options. A 3GS wud be an unconventional choice but still good. If not, droids still get the best titles, but you won't have too much choice.