Here is how I see the future of the gaming handheld market: Nintendo handhelds are going to remain popular with children, hardcore Nintendo fans and Japan. Sony handhelds are going to remain popular with Japan. I see the western 15 to 34 demographic (outside of hardcore Nintendo fans) mainly embracing smartphone gaming over dedicated handheld gaming. However there's always going to be niche gamers (ie. jrpg gamers, western fans of niche otaku-ish games like Ace Attorney, Harvest Moon) and avid gamers that believe that dedicated gaming handhelds and the $40 games are well worth the premium. The market has changed ever since the western male 15 to 34 crowd stopped giving a fuck about playing God of War and Grand Theft Auto on handhelds (compare recent Ghost of Sparta sales to Chain of Olympus sales if you wanna see what I mean). There are people who care about God of War on PSP. But they are in that minority avid gamer camp. For most guys, God of War on PS3 is good enough for them. They don't care too much about God of War on the go anymore.
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