I think we'll start talking about Android/iPhone taking a bite out of handhelds when the 3DS launches, and it doesn't sell as well as some would hope.
2-3 years from now, the focus will all be on mobiles and not on the 3DS/PSP2. It makes little sense to develop on these platforms, as a top-tier game on a mobile will make a lot more money, and cost quite a bit less...And has a better long-tail for sales.
A great example would be Robo Defense for Android. Its been the #1 game on Android since it debuted last May. Not only has it stayed at #1, the per-month sales of the game has actually increased 2 or 3 fold since it debuted...So sales for a year-old game are still increasing. Not bad for a game that probably cost one or two developers a few months of time to make.
Back from the dead, I'm afraid.
