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Endz said:
Handhelds won't become less important, consoles can't be played on-the-go, that is the appeal of handhelds.

At some point I do think a DS or any hand held will need to become a phone also and a phone can take pictures, see videos, etc. When people realize they want more and more portability, people will see a phone on their left hand and a handheld on their right and say "why do I need to carry both?" but I don't see that happening until two more generations or so.

IMO the extremely high prices of the current console gen. are the reason for the stellar handheld sales over the past 2 years. In the years before Nintendo typically sold 20 m units but in 2007 it sold 30m and Sony an additional 15m PSPs. I think those figures will shrink when consoles are back in the $120-$250 range.

How fast the mobile phones make the typical gaming handheld obsolete just depends on the steps Apple, Nokia, Samsung..... take in the next years.