There is a market for stand alone handhelds. In fact there are several markets still open.
1. Kids 4-12 most kids dont have a phone before at least JR High (at least my daughter wont, lol) and most parent will pay pretty much anything for a device that will keep their kids occupied and happy.
2. Gamers- . No gamer would choose an Iphone game to fill his gaming needs, ya maybe to kill time here and there at work, or on short trips. I see this a the people who like games, but as a hobby and nothing more.
3. Core gamers- Of course they will buy. Their souls require them to.
End of 2009 Predictions (Set, January 1st 2009)
Wii- 72 million 3rd Year Peak, better slate of releases
360- 37 million Should trend down slightly after 3rd year peak
PS3- 29 million Sales should pick up next year, 3rd year peak and price cut
