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I can understand why he's saying what he's saying about Wii U, even though I think it's way to early to count Wii U out. However, I don't understand where he keeps getting the idea that Nintendo's handheld is being cannibalized by the smartphone market. If he's going by sales number alone, that doesn't mean anything. They are two completely different markets. Most people don't buy smartphones to play games. Naturally more people are going to buy smartphones. Looking at the 3DS by itself, it's constantly outselling every other game system on the market. It's getting the kind of exclusive third party support that everybody (including Nintendo themselves) wished their consoles could get. Nintendo's own games are selling very well. It's managed to hit the 30 million mark after 2 years on the market which started which a fumbled launch. Yeah, it may not be smartphone sales or 99 cent game sales, but Sony would probably give anything to be in Nintendo's position right now.



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