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Moonhero said:
YAY! Soon all games will cost $.99 and All I will need to play it is a $599 ipad!!! ^_^ Thank God we will never have to pay $50 for another Mario outing again!

To add to your point, picture a world where core gamers ditch Halo, Mario, GT, GTA, ME, and BioS for angry birds, of infinity Blade?

Also consider that an iphone cost about $300 every 2-3 years (apply  this to every Smartphone). In other words, the hardware have no longevity, in 6 years you will have spent at least $800 on Smartphone hardware just to play the latest version of AB, CTR, and IB. Compared to a 3DS and a Vita which combined will cost less than $400 and will last at least 5-8 years, not to mention the games are far better.

I don’t get this Smartphone will eat away the handheld market argument, I can’t think of any Smartphone games that I want much less shell out $300 for the hardware that runs it.