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smartphones are now even more powerful than dedicated handhelds. What nintendo need to do is to differentiate their product over mobile phones, and smart phone is catching up pretty fast. maybe that is why vita is not performing well enough. It's a smart phone with gaming buttons. Smart phones nowadays have 3d screen (unsuccessful, until apple would release one i bet) so nintendo's"gimmick" (as much as i hate to use the term) is decreasing rapidly. Hand held might be on a decrease but we are talking on a gaming company that can survive with their own IPs... and that is a hard feat to gain.