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Portable Music and Games Market

The markets for portable, handheld video games and portable music services will both eclipse $2 billion by 2009, according to a report released by market research firm Yankee Group. The firm projects that half of all portable music players will be mobile phone hybrids by 2009, although music phones will account for just a third of portable music service revenue.

Likewise, by 2009 cell phones that play games are expected to garner a near equal share of portable game revenue with handheld game devices, like the Sony PSP and Nintendo DS. "This convergence of wireless handsets and CE devices will force wireless handset manufacturers to both compete and partner with consumer electronics manufacturers," Yankee Group said in its report.

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