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Troll_Whisperer said:

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My opinion is that analysts and investors don't have a clue of how this works. The NDS was selling gangbusters not a year ago, and I doubt the situation with smartphones has changed that much since then.

http://www.seedplanning.co.jp/press/2011/2011090801.html
Here are some figures provided by Seed Planning, Inc.
The Japanese smartphone software market was worth 8.5 billion yen in 2010. In five years, it is projected to increase by 30 times to 255.0 billion yen.

 

http://www.famitsu.com/news/201101/05037551.html
For comparison, the Japanese home console and handheld software market was worth 318.1 billion yen in 2010.