We just had to make this decision. I have friends that have the Kindle Fire and their kids love it, but we went with the iPod Touch and have not regretted it for a second! I got it on amazon for $180, last time I looked they were up to $187. It was worth every penny- great for amusing the kids at the doctor's office, grocery shopping, etc...and a million times easier than keeping track of the DS and all the teeny, tiny games that go with it. We'll probably end up with a couple more eventually (we have four kids and they rotate my phone and the iPod when we're out- sometimes they're not that great at sharing!).