In regards to mobile gaming I think the problem is that the traditional gaming hardware companies (Sony and Nintendo) are slow to adopt and adapt to the Smartphone/Tablet phenomenon. Thus, their failure to adapt may cause a contraction in the mobile gaming market and that may be reflected in the home console gaming market.
The other struggle for the home console gaming market is differentiation. Not so much between each competitor, but between generations. Better graphics and inputs might be a reason for gamers to buy but clearly all three are aiming at a non-gaming market as well. The difference is that Microsoft is just blatantly obvious about it.
Sony and Nintendo have to do more about bringing gaming and mobile devices (smartphones/tablets) together if they want to sell to modern gaming enthusiasts. As for home consoles, outside of gaming, there has to be a compelling reason to buy a home console. Something new, something magical.
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