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I really don't think android/ios as competition for handhelds. its almost in a completely different market. I tried gaming strictly on my ipod for a month, but it just suuuuuucks for gaming. most of the games are crap, and even the best ones pales in comparison to games like Kid Icarus Uprising, AC New Leaf, Mario Kart 7, RE revelations, Luigi's Mansion etc. etc.
the only thing they have over handhelds is that they are dirt cheap, but im willing to shell out $30+ a game if that means Im getting good quality. me, and my other fellow gamers still play games on our Ipods/Iphones but mostly because we don't really have anything better to do, like if we are just waiting for something and its the best way to pass time.
the only market it exclusively has is the casual gamer market, and current 3DS sales show that they are doing pretty darn fine without them.
