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Mr Khan said:

The problem with your argument of utility and cost is that it falls short in the face of the increased utility of PCs and much lower-cost games that exist on PC (though these can't be compared to console games in the cheaper cases, neither can most of the cheapo mobile games be compared to the bread-and-butter handheld games)

We're going through the same cycle in the handheld space  now as we were in the console space 25 years ago. The question is if the handheld providers themselves provide content compelling enough to make sure the devices don't fall by the wayside when compared to the device with greater utility, but that market is at the same crossroads and most of the same arguments come into play

Far fewer people carry around laptop PCs with the continued growth of smartphones and tablet PCs as such general use devices provide just the right amount utility for the majority of mobile users. More specialized PCs, to include laptops, are generally only required for specific tasks whether that be spreadsheets, workprocessing, graphic design, whatever; they're generally not needed outside of the workplace when the most typical mobile uses would be e-mail and web browsing; both of which are done on more portable devices with faster access to data and better power management.

With the growth of tablet PCs, there will be far many individuals carrying these around than traditional laptop PCs. It's not a trend; it's disruption. There are more indepth apps for productivity on traditional PCs, but to the average mobile user, that doesn't matter. Mobile devices still work and work well and more importantly, they're always on and always as available as one's phone.

There really isn't any comparison with today's market relative to 25 years ago where such devices were literally science fiction.

Gaming devices, are essentially task specific devices with their primary purpose being entertainment (gaming). As a typical smartphone user, if I'm only going to carry one device with me, it's not going to be a handheld gaming console unless I'm heading to some sort of gamers' gathering to play games. Mobile iOS or Android games are fine for the majority of consumers in most circumstances. If I'm only playing for 5-10 minutes at a time typically, I don't need a $40 game for that.

Currently the biggest market for handheld game consoles are gamers who prefer portable gaming. And that's one market that really isn't growing. Regardless of how compelling the games are, they're essentially selling to the same audience as the previous/current generation.