Interesting article. Whereever there's money to be made, 3rd parties will be there.
I've been saying a lot of this myself. A lot of games that used to be worth $30-40 on PSP/DS (or Wii) like Papaton, Rocoloco, Brain Age, Rhythym Heaven are really hard to justify in today's iOS/Android fed market. All sorts of games fall into this catagory: Kororinpa, Mecury Meltdown, Pinhall hall of Fame, Puyo, Worms, Tetris, many racing games, and mediocore games of all genres. Why would I buy it for $30-40 when I can get similar for $2-5??
People will be really relunctant to spend that on anything other than a sure bet, which will drastically reduce the amount of retail (NN,PSN is another story) games portables (and to a lesser extent Consoles) will have. In the end, this will lead to lower hardware sales as well, which reduces the profitability of even AAA titles.
Not saying 3DS is doomed (Vita maybe) but the market is definitely changing.
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