I don`t believe it will.
Can you imagine what the next COD, Mario, Halo, Uncharted, etc., will play like next generation? Or what the next big thing will be? Last generation it was GTA; this generation it was COD for the core and Wii Sport, Nintendogs, Brain Training, etc., for the casual. Who knows what will come next year or in two years.
About this generation sales numbers, after this Christmas it will surpass PS2/GC/XBox/DC. I don`t see that as a bad sign.
I agree that gaming in other portable devices besides handhelds is increasing. Of course it is: it`s a brand new market, it`s a way bigger market than handhelds. The games costing less time and money to produce (my opinion) make them flourish. According to Edge (http://www.next-gen.biz/news/app-store-now-houses-over-21000-games) there are over 21000 games just on App store... 21000 games!
How long can this market sustain itself growing so rapidly?
It`s a pretty atractive market, but it`s becoming a red ocean. Even if the current handheld market and console market is a red ocean there`s still space for companies to be successful in the long run.
All these comparisons are being made between two sides of an industry that so far don`t seem equal. By their own nature consoles and handhelds don´t change as fast as smartphones and tablets so its cycles are slower and longer.
