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Videokameras said:

Nintendo totally crushed Sony the handheld market, saying Iwata is delusional is like saying David lacked courage when he fought Goliath.

Totally crushed? in the DS/PSP era one in three handhelds sold was a PSP, with Sonys first attempt at a handheld (nintendo having, at that point, the GB, GBC, GBP, GBM, GBA, GBASP, GBAM, with that in consideration and going up against nintendo with their track record of portable titles, getting a 33% market share for handhelds was far from being crushed.

As for the Vita and 3DS, the 3ds is obviously going to finish ahead but how far ahead remains to be seen at this point, when the original wii left the ps3 and xbox 360 for dust, people said it had destroyed them sales wise, yet both the ps3 and xbox 360 are closing in on the 100m with decently strong sales globally, where as the wii virtually died 3 years ago.

Another point you seem to miss is that the success of the 3DS is coming at the cost of a failing home console, portable and console versions of the same game give 3ds owners no reason to buy in, and with better game support and cheaper hardware, the 3ds has become the go-to place for nintendo games, making its home console redundant.

Your david and goliath reference then is backwards, nintendo in the handheld market would be the goliath, and the psp/vita, david.