There are plenty of good mobile games, it's all about good developers here. I'm sure the talented handheld developers of Nintendo and Sony can work out some fun games.

If you desparately want real buttons and analog sticks there is not alternative to either a second device or a peripheral that you can plug into existing phones. The latter one is preferred of course because it means you don't have to buy a second device and are not bound to a phone for a whole generation cycle. The latter one is of course the most consumer friendly path but neither Sony nor Nintendo are known for their friendliness but for their love for closed systems.

I wouldn't mind carrying around a peripheral that I can easily plug into any phone as long as I can use my own device.

Easily? Where's your proof? Most of those 200 million users probably abandonded their handhelds when smartphones came out. The ones that didn't were dedicated gamers, and we don't know how many they are.

A PS4 Phone? You have any idea how much that would cost? They would probably have a price of over 1000$, and that's without a subscription plan. Not to mention, why would developers make an app for a home console? Even if it had a mobile counterpart, they wouldn't make it work for the console. The console and mobile version would be very different.

And in the last part, I'm talking about incentives. Nintendo still makes the original 3DS, but Apple no longer make the original iPhone. Nintendo still makes the original 3DS, because newer models are not much different. Apple no longer makes the original iPhone, because they advertised newer models as much better phones, even if the features were barely an upgrade. Nintedo would have to abandon their way of releasing handhelds, which would be very difficult.

Pixel will not be dominant.

Nintendo will not, and will not have to, release a phone hybrid.

You don't understand why people have multiple devices?

"Jack of all trades, master of none."

I know many people that refuse to use the blu-ray drive in their console for movies because they're afraid of how much wear and tear is being placed on their console disc drive. It's easier to buy a $50 blu-ray player than replace a PS4 because the disk drive burnt out. You might think that's crazy, but I get it.  My original PS3 died and replacing it was a huge pain.

I also know there are numerous apps on streaming devices that will never ever ever be available on something like a PS4, like apps that stream illegal sports streams. So there creates a need for a streaming device that a console will likely never be able to fill.

So what don't you get?

This whole thread reminds me of JohnLucas. You remind me of those people that go on shark tank and say things like "if we can just capture 1% of the market share we'll be bajillionaires!" You are completely deluded in your understanding of todays current markets, the feasibility of things you assume are easily doable,  todays current technology, and why people buy the things they do.

There are some iOS and Android games that have their moments, but every time I play one, I just can't stop thinking about how much better the game would have been if it was not so restricted. 

At this point I am looking for any way to get a legitimate handheld experience from a phone, but I don't want to be carrying around anything bigger than the OG Vita. I would love to see Nintendo partener with Apple and make an iPhone 7 Nintendo Edition. A phone built with every perk of iPhone 7, but with the form factor to deliver the quality experiences we know from Nintendo, would be an amazing device, if it was supported by Ninitendo and 3rd parties at the level we see with a dedication handheld or console.

I just don't know about a peripheral. One it is hard to plug one in and not have a monstrosity. Two, it is very hard to get universal support if the whole control scheme is not built into every device in the eycosystem. There is a chance I could get on board with this, if something was announced at E3 with massive industry backing, but it would take a lot to convience me to buy into it.

The proof is in the over 200 million people that constantly buy consoles and handhelds gen in, and gen out, with the exception of current gen handhleds which lacked the most important feature of any mobile device (Mobile Data and Communication). There are over 200 million consoles in homes, and some of them are used by multiple gamers, which means that the poularity of a great handheld should outstrip the popularity of a great console. This has been prooven gen in, and gen out buy Nintendo fans who buy 4 to 5 times as many mobile devices as home consoles.

A phone built on a scaled back version of the PS4 hardware on 10nm FinFET would be no where close to $1000. Industry leading smartphones from Apple and Samsung only cost ~$250 to make, these companies absolutly rape consumers with the $700+ price tags they put on them. In the handheld and console industry things have always been about taking a loss or breaking even on hardware and making profits through software. PS4 cost ~$380 to build at launch and sold for $400, PS3 cost ~$800 to build at launch and sold for $500. 

If Sony released the above 10nm FinFET PS4 Mobile device, that could run all PS4 software at 540p, and checkerboarded to 1080P, and had 256GB of on board storage, the device would retail for no more than $400. The build cost would be somwhere in the high $300 range. 

As far as apps went, it would be identical apps for both, because it would be the same hardware. Why would they make apps for a console? Because, consoles are the future of home computing. It is the reason Scoprio will have every banking app, every torrent app, every video player, and on, and on, and on via Universal Windows Apps. Consoles are to big of investments, and far to capable for these companies to let them sit around for games. These devices are multiple times more powerful then any other device in 99% of homes, and they trying to use them to unify, and elevate the lowest common denominator.

On Nintendo having to change their business model. That is absolutly correct. Yes they would have to, and they absolutly need to. The console and handheld business model of releasing stagnate hardware for 5 to 8 years is no longer viable. When you only had a handful of powerful companies releasing new hardware every couple of year that was fine.Now when you have dozens of companies releasing revised hardware every year, and entering the same market space, you have to evolve or die. Sony and Micorosft are doing it right with Scorpio and PS4 Pro by starting before they get overtaken. Nintendo and Sony did it wrong with Vita and 3DS, and now we are left where we are. They have to change or they will loose the mobile market, and if they loose mobile, the home side will eventually colapse to these more hungry competitors.

lol what... correct me if i am wrong..

1. Pixel is a game changer, how? Google has always manufactured phones...?
2. The only companies who makes a decent profit on manufacturing phones are called Apple and Samsung. Why would Sony or Nintendo go gangbusters into a market they know they have a slim chance of penetrating and make any profit once they do?

You have also yet to demonstrate that this device will sell. Just because 200 million people bought an NDS or a PSP doesn't mean they'll buy whatever phone you're hawking. That was a decade ago. Based on your same logic, 100 million people would be happy to buy a SD console with a remote for a controller today because 100 million people bought a Wii. Markets change. You have not demonstrated that 200 million people want a gaming phone today.

Also, you keep harping on the price it takes to make an iPhone (which is just a third party estimate, you're not getting these numbers from Apple), but fail to take into account it only costs that little to make because of the vast volume that Apple sells. They're buying from companies at razor thin margins because of the volume they buy. A new player would not be able to get such low margins until they buy at the volume Apple buys at. Then again, you're just looking at the cost of the hardware itself, and ignoring the cost to manufacture, package and ship the phone, as well as the research and development cost to actually develop the phone itself. This can significantly increase the true cost per unit of a phone. Care to take a gander on how much additional R+D it would cost to develop your gaming phone? How about how much more expensive it would be to manufacture the phone? How about the additional cost in educating the public on your new gaming phone? These are all things you need to know if you're going to nail down how much a device like this should actually costs, because for all anyone knows a gaming iPhone 7 might cost twice as much per unit than a regular iPhone 7.

Right now you're assuming it doesn't because.... well it's inconvenient for you, and you can't possibly know that.

Want a know a much better idea that's not only plausible, it might actually work? A Nintendo branded phone case with built in controller. Think a 3DS clam shell you slide your iPhone into. Nintendo published iPhone games all support the Nintendo case. Much more plausible. Far less risk. Far less expensive. There is no need for Sony or Nintendo or anyone to make a new phone to tap into the mobile market.

It would bomb. I would be ashamed of using a video game as my work mobile phone, and I think tons of people would feel the same also.

Market share is just a percentage, and has to do more with direct competition than health of the market.  And though a Market share comparison doesn't address the contracting handheld market, it isn't a bigger fall than PS2 to PS3 in terms of market share.

The PS2 to the PS3 had a 46% drop in home console market share.

That is one of the largest gen to gen drops of console market share in history, I think only Atari had a bigger drop in market share from one gen to the next gen.

PS2 gen the market was around ----- 200M (77% PS2)

Wii gen the market was around ------ 270M (31% PS3)

DS gen the HH market was around ----- 230M (65% DS)

3DS gen the HH market is around ----- 75M (80% 3DS)

The 3DS is also at levels lower in terms of unit sales than the GBA right now.