iPod vs Zune in games market?

With the Zune range expected to support games at some point in the future, it appears that Apple is preparing to do battle. The EETimes has a piece on the new chipsets to be used in the next generation iPods. One interesting point is that the new chipset will support 3D graphics as well as the standard video modes that the current chips support.

Why would Apple want to add 3D to n mp3/video player? Are we likely to see Apple taking on Microsoft in the handheld gaming sector? And what would that do for the Nintendo DS and the Sony PSP?

One thing is for sure - there is going to be a large-scale tussle in the portable arena during the next couple of years.