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oni-link said:

I agree, that's why it drives me bonkers when analysts predict the doom and gloom of dedicated handheld systems in the face of gaming tablets.   Though I do admit that it has an effect on both the 3DS and Vita; especially the Vita!!!

Yeah, there is definitely room for both mobile platforms and dedicated handhelds. Even Iwata thinks so. The Vita has a whole host of problems aside from competition. I think its target market overlaps more with the 3DS than with mobile devices, and still more with PS360 than with 3DS. It needs a broader variety of content, not just "console experiences on the go," and it needs to be more affordable.

As for 3DS, it may have been affected a little bit, but I think that the video game market is expanding quickly enough that Nintendo's target market hasn't really dwindled since the DS. It may be about the same size... but in a few years it will be larger. There is definitely room for the 3DS, and there is definitely room for the Vita, too, if Sony only knew how to capitalize on that room. If Apple can find a market for a tablet device in-between smartphones and laptops, and then find another market for another tablet device in-between smartphones and their first tablet, Sony should absolutely be able to find a market between smartphones and consoles.