Up until now, the mobile gaming market has been largely dominated by the Nintendo DS and the Sony PSP. With the upcoming launch of the AppStore, people are saying that the iPhone could be a viable competitor in this market. After all, it has the touchscreen functionality of the DS and the motion-sensing (sorta) of the Wii. Should be fun, right?

Well, the problem is that the screen on the iPhone (as well as the iPhone 3G) is that it has a pretty bad viewing angle. When you go through playing Super Monkey Ball or any other iPhone game that involves the accelerometer, you may have a hard time seeing the action when you start tilting the handheld in every which direction. Gaming without seeing is a pretty big problem.

Gizmodo has a simulated video to demonstrate this phenomenon. Will this be enough to hamper the popularity of iPhone gaming? We’ll find out soon enough.