Complex sentence: The Caanoo is not a direct competitor of handheld consoles like Nintendo DS or PSP, but rather an alternative open source device, because of that any software that is compatible can be run without the need of creating custom firmware or other homebrew applications.
Split into simpler sentences: The Caanoo is not a direct competitor of handheld consoles like Nintendo DS or PSP, but rather an alternative open source device. Because of that, any software that is compatible can be run without the need of creating custom firmware or other homebrew applications.