As it stands now, one of two things would have to happen for handheld gaming and cell phones to come into direct conflict. One possibility is making a battery that supports a massively larger amount of use time, meaning that you wouldn't have to sacrifice power used for one feature in using the other. And that's likely to backfire, too: people will just leave their cell phones off the charger longer and still complain.
The other, less likely possibility is that cell phones adapt a form of gaming which can only be done effectively if cell phone service is factored into the equation. Cell phones are extremely well-suited to online gameplay, but if there were a way to capitalize on that which both appealed to the market and could not be replicated on handheld game systems without turning them into cell phones or cell phone-capable, then they would be able to compete with and possibly even overcome handhelds. Though it's not assured; it all depends on how much value the non-elite consumer puts into the cell phone-exclusive-feature game.
Sky Render - Sanity is for the weak.
