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Aren't you contradicting yourself???

1)you are talking about experia/smarthphone which is/are far more expensive than handhelds(claimng this to be solution/future) but at the same time you say they had to be cheap????

2)your "hardware power not needed for handhelds" ?
a)why are people still buying stronger and stronger smartphone hardware?
b)the same arguement was used for wii-look how fast it ended

btw-mostmobiles already have more power than vita-even cheap ones.

 

The problems about graphics is: no matter how powerull smartphones will be there is almost no market for AAA games.

The siruation is even worser than on PC where almost no exclusiv AAA games exist because of low sales but cheap ports from consoles.

mobiles don't even have cheap console ports of AAA games.