Well I think we can call it the Japanese 3D bet display disaster. Back in 2010 almost all keita manufacturers and even Nintendo thought 3D is the next big thing. And then an American company named like a fruit conquered the market with apps and touchscreens.
I think the PS Vita was even a much stronger western approach to handheld gaming and even Sony didn't reached western game companies at that point. Given the time and the smartphone boom, many devs just didn't believed handhelds will still be a thing in the future and concentrated themselves on their core markets or started mobile gaming business sections, like EA, Ubisoft, 2k Games, Activision Blizzard, Bethesda and most recently even Nintendo did.