This argument is just like the physical format vs. digital distribution argument.  Both will continue to co-exist with each other for decades to come.  They both have their advantages and disadvantages.  And they will both have their die hard supporters, while most will dabble in both.

I agree, it's like PC and Mac. Some people like one, some the other. Doesn't mean either will destroy the other, because they're fighting for different markets

Again... Apple is NOT competition to Nintendo. People don't buy Iphones JUST to play games. 3DS is purely a game machine, Iphone/Ipad/Ipod are NOT. It's as foolish as claiming the PCs are a threat to home consoles. They are simply different markets, and different products meant for different things. If my toaster starts playing games, will that be another competition to Nintendo's handheld market as well?

People are just trying in desperation to find another way to show that "nintendo is teh doomed!" since they now are leading the console market and have like 70% of the portable market.

Yeah, that article was the best. Apple has over 50% handheld market share! Console gaming is teh DOOMED!

I think you may be missing the point though.  If MOST people already have an iphone, or a device like it, and they are satisfied with the half baked games (not very thorough etc...) then why should that person go and buy another handheld from Nintendo or Sony like they used to?  That is what needs to be answered.

laff, i like your analogy there.  made me laugh but I think it's very relavent when taling about full games and their respective consoles vs. phones and app games.

The problem with that logic is that I don't think most of these people you speak of exist. People who are serious enough about gaming WILL buy an actual handheld gaming console. Those who aren't wouldn't have bought one anyway. It's as simple as that. These micro games found on the Iphone are not going to be enough to deter a serious gamer from playing Mario, DQ, FF, Monster Hunter, Layton, etc, on the handheld consoles.

Also, cell phone games have been around for what, a decade if not longer, yet haven't harmed handheld consoles. So I don't see why the iphone would suddenly change that.

It wasn't possible to play games on phones with better hardware and better development tools than dedicated portable game systems prior to the iPhone 3G much less decades ago.The portable games market has changed more in the last two years than it has in the past twenty directly because of the iOS/Android market. It's easily the biggest disruption the market has seen since the advent of portable gaming.

There's no question dedicated handhelds will always have their built in market, but the days of them being the default portable gaming platforms for general consumers may well be over and frankly, all of the established IPs that were once only available on handhelds won't change that.

You do realize that the Final Fantasy franchise has been ported over to iOS (I'm guessing it's on Android as well) and Square Enix is continuing to port more titles. Final Fantasy iii was just released last month and the port has received excellent ratings, just like FFI and FF2 before it.

That was just one example, but it's not like this is some sort of isolated instance. Epic ported Unreal Engine 3 to iOS and it doesn't take a great deal of foresight to see where that's leading for handheld developers. All the major publishers are either on board or behind the power curve if they aren't.

The advent of portable gaming on smartphone platforms that are now capable of going beyond Tetris, Pac-Man, etc. is a simple case of market disruption. The tools exist to develop "serious" games once only playable on dedicated gaming devices. So it actually is a sudden change in the market even if it doesn't mean the market for dedicated handheld game consoles is now gone.

There are plenty of "serious" games on mobile platforms, but one of the key differences between these and dedicated portable game systems is that consumers generally don't buy their phones based upon the games. It's arguable that Apple has sold quite a few iPod Touches to those were were just as interested in portable gaming as they were in portable music/video, but the biggest growth is still in the smartphone market.

I find it childish to believe that indie devs will kill anything but themselves. They exists because the revenues so far were low and big companies didn't bother. Indie devs are pioneers and pioneers inevitably disappear when the market matures.

Sure, smartphones market is increasing but that's mostly because they bring in new customers. It's stupid to think that someone who played on any gaming console will replace their beloved games with gimped down flash games. 

"Games" on smartphones will ALWAYS remain at the stage they are now. Stupid flash games people play in buses when they want to put their brains on pause until they arrive to their destination. This "games" can't evolve more because they lack controls. Adding proper gaming controls to a smartphone is and will remain not possible. It would simply be too big and clumsy to use as a regular phone.

Anyone who plays games for the pleasure of it will most likely use their smartphones only to browse internet for more informations about their games console.

PS: also when you're gonna be on that train for a long time you will actually want to conserve your phone battery so you can actually use it as a phone :)