What do you mean by "will Sony and M$ start to focus less on gaming aswell"?
1. DSi is the third installment in the DS line, you may have had a point if DSi had been the first or if it would have been a completely new handheld.
2. The reason for DSi:s existence is the saturation in Japan. Looking at the sales in Others and Americas, there would be no reason to introduce a new one. It's just that the current number of gamers isn't enough to keep DS sales as where Nintendo would want the sales to be in Japan. There are still around 100 million people in Japan who don't yet own a DS, so the potential is huge.
3. Blue ocean, Nintendo wants to expand the audience even further. Eventually this new audience will buy games, if there are games that interest them. Expect the brain training games have a sales boost because of DSi.
The further you go on sales and the larger audience your machine reaches, the smaller the attach rate is going to be, but profiting from the hardware makes attach rate more or less irrelevant. I'm betting that the guys at Nintendo have been laughing their asses off, because of Sonys chosen strategy with PSP and PS3.
4. Expect new kind of games coming for DS, maybe even some DSi specific games, but they definately are coming, so that Nintendo could keep on selling games.
5. Nintendo didn't make DSL obsolete, since the GBA slot was removed, although the DSiWare is superior to GBA slot...
After all, only by targeting largest possible audience, you are focusing "less on gaming", atleast gamesaleswise per units of hardware.
Ei Kiinasti.
Eikä Japanisti.
Vaan pannaan jalalla koreasti.
Nintendo games sell only on Nintendo system.
