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Soundwave said:

I think you kinda have to look at device sales though when look at it in context versus traditional handhelds. 

A person who is content playing free games on iOS may not contribute to mobile gaming revenue, but they are getting their mobile downtime eaten up by their phone, as such that person is unlikely to purchase a traditional handheld. 

That's a big problem for traditional handhelds. A lot of people today feel like 'why should I buy one of these, I have 10-15 minutes of free gaming time when I'm away from the house, and I can play smartphone games during that time'. That's really what's hurting traditional handhelds, people are deciding they don't need one at all. 

It's a role phones just perform better. But when it comes to AAA handheld gaming, when you sit down longer or are commutor who's travelling long stretches, handhelds are just better.