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Sony, Nintendo, SE, EA, Activision etc will always find a way to make handheld games which they can charge $30, $40, $50 etc for. Whether that be on dedicated handheld platforms like the PSV / 3DS, on the phone / tablet market or something else in the future remains to be seen.

They're both fighting off something which will always eat into their market though. I don't think phones are going to completely swallow both the PSV and 3DS, afterall we wouldn't suggest the same thing happening to consoles too even though phones play games. But dedicated gaming handhelds are definitely going to see some of their exsisting market lost to other devices.