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Nintendo is maintaining a leadership of both territories, the handhheld and home consoles, so they're in the equivalent of Genesis and Gamegear period of competition. This means they'll have competition, but whenever one goes down the other goes up. When Nintendo lost home console leadership, they gained a monopoly in handhelds.

Right now Nintendo is about to lose their leadership in handhelds to iOS, so I expect their next home console to be so groundbreaking it will reward them a monopoly.