Handhelds to outpace consoles by 2011 - report

San Diego (CA) - Rising prices for home consoles and increasing interest for casual games will put handhelds ahead of the Wii, Xbox 360, and PS3, according to analyst firm DFC Intelligence.

The two main handhelds, the PSP and the DS, will account for about $10 billion in revenue by the end of the year. The market will continue to increase, and by 2011 it will overtake the home console industry.

"Under the right scenario, by 2011 the combined installed base of the DS and PSP could exceed that for the Nintendo Wii, Sony PlayStation 3 and Microsoft Xbox 360," it said in the report.

DFC says the DS "has the potential to be the best-selling interactive entertainment platform ever," though the PSP will still hold on to significant market share.