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UncleScrooge said:

If smartphones truly are a threat to Nintendo's and Sony's handheld business, fine. But so far all claims seem to be based on slowing DS sales... and those are clearly a result of slowing support and the age of the hardware.

The point is that the iPhone alone for instance is selling like 1m a week. If you consider the small costs of developing to it and the number of people that will casually buy games on a smartphone (let's say 25% to be on safe grounds) and you'll see how tempting the business is becoming. For me at least there is a considerable chance of the 3DS and the PSP-2 being devoid of third party support on the middle term.