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The smartphone and tablet market today is not substantially different than the flash game market that existed on the PC for years; with the exception that there are tons of (IMO stupid) investors who are willing to invest millions of dollars into unprofitable companies in the hopes that a sustainable market will emerge on mobile devices.

I won't say that there is no impact on handheld devices because a large chunk of the success of the Gameboy and Gameboy advance was based on these kinds of simple gameplay experiences; but there is also the (IMO larger) market of retro and console games and the smartphone market doesn't have a business model that works for these games.