I think consoles will continue to grow as MS and Sony get better at incorporating non-gaming features into their boxes (thereby drawing in the more casual crowd) and as Nintendo again takes their ball and creates their own game off in the corner.
I expect the exact opposite from handhelds. Some from market interference from other gaming sources and some from the lack of a killer casual app (though, given the phone/tablet market, the two are kind of linked... the casual "killer app" of last generation, Brain Training, would probably see light of day on a phone/tablet for $5 in today's market, not on a dedicated handheld).

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