I don't think that the handheld market has been hurt by smartphones. Well, it sorta has, but it only seems that way because last gen was extremely big for handhelds (and home consoles, actually) due to DS and PSP catering to people previously not interested in handhelds. PSP provided entertainment on the go in various ways (and through piracy) while DS attracted "casuals". Both groups have been "lost" to smartphones, but since they were only really participating in the dedicated handheld market since last gen, can we even call them losses?
If you compare the GBA's generation, numbers actually don't look bad for this gen up until now. There also was only one major handheld on the market, while there are two now. Or heck, even the original GameBoy's generation could be comparable at the end, considering it's more than ten year long lifespan.
I don't really think the market has been hurt. It's just back to status quo.
What has been hurt though is Sony's handheld, since they only came in last gen and, as I pointed out, most of the PSP's sales came from a crowd now lost to smartphones.
Nintendo Network ID: domflo
Add me if you like!
Ask me about 3DS Friend Code if interested. All other things are in the profile!
