Well, I think there will be a market for higher quality portable titles. As in not 99 cent ones. (not saying 99 cent ones can't be good, just the standards of acceptable is generally lower)
The iphone has some Like Chaos Rings, and Chaos Rings 2, Angry Birds, and probably others I don't know about. That are comparable with some of the better handheld games.
I do think, phones can/are really damaging nintendo and sony's handheld market. Because of the people that just want something to fiddle on the plane, etc. My little cousin uses his dad's iphone to game with because it has games he likes on it, and his dad doesn't have to spend extra money on a portable device.
They have a game system at home. So the want for a dedicated portable gaming device is lessened significantly.
But the 3DS, launch was bungled like the PS3's (which is doing fine now), if when say pokemon comes out, and that can't sell. Then there is serious problem for nintendo.







