Mobile gaming is making handheld consoles a "niche"

Sony/Nintendo shipments take a beating from phones and tablets.
A couple of years ago, if you heard gaming war cries like 'Hadouken' in public, it would have come from a Sony PSP or Nintendo DS – especially in 2008 when combined device shipments peaked at 47 million.
However, ABI Research says you're now more likely to hear the sounds coming from smartphones and tablets.
It claims the mobile is pushing handheld consoles towards a "sustainable niche" market, estimating that Sony/Nintendo handheld gaming device shipments will fall to 38 million in 2013, and stay flat to 2017.
Michael Inouye, senior analyst at ABI, said: "Mobile devices will compete with dedicated handheld gaming devices, but select consumer segments like core gamers and those individuals who do not want or have a smartphone or tablet will still provide some demand."
An example of the turning tide was demonstrated last year when the Nintendo 3DS started off strong during its Q1 2011 launch, but Q2 forced the Japanese firm to slash the price from $249 to $170 to keep buyers interested.

http://www.mobile-ent.biz/news/read/...a-niche/018273