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Obviously true, and yet only if you think the handheld market begins and ends with dedicated gaming platforms. The only reason people don't consider Apple and Android devices handheld consoles is because they don't "play by the same rules" -- so there aren't exactly a lot of multiplatform 3DS/Vita/iOS/Android games.

But phones have not hurt the video game market; they've done the opposite. They've only hurt Sony, Microsoft, and Nintendo, as the hardware makers.