I still can't see IoS, Android or whatever making any real inroads on the console market. The controller thing is a stumbling block but I think the real issue is the price of games - the fact is you have to sell the things for $1 max, so you're never going to get games on the scale of Uncharted, or COD, or whatever, cause they can't be made on the budget anywhere near equivalent to something they charge $60 + DLC for.
I mean, look at Angry birds, the undoubted biggest hit in what is a very top-heavy market. Rovio's total revenues for 2011 - when Angry Birds Space was released - were only just above $100m. While that's a triumphant return on investment the fact is the home console market can see games post revenue 10 times that within their opening week.
I see them for now evolving as two very different markets offering two very different experiences for two different audiences. I think we will see some sort of 'merging' like that AC facebook game that while making money, also worked as a promotional tool for the new AC. We'll see stuff like Fifa UT being an app on phones. I can't see the ultimate 'merging' happening within the next decade though, albeit I think that is the end game.
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