An example game apparatus generates and outputs a predetermined test image to a television. A terminal device has its image pickup section acquire a pickup image of a screen of the television, and transmits the pickup image acquired by the image pickup section to the game apparatus. The game apparatus determines whether or not the pickup image includes the test image. When the pickup image is determined to include the test image, an image delay time is calculated on the basis of the time of the determination, the time of the output of the test image by the game apparatus, and a processing time between the acquisition of the pickup image and the determination. The game apparatus uses the image delay time to achieve synchronization between the terminal device and the television and also between image display and sound output of the television.