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It's not going to die...
I think nintendo will have a handheld market. But smaller, and they need to embrace that

But it's cellphones and tablets eating into their market... Particularly imo, the less expensive games to develop that cell like hotcakes (brain Age).

There are games that are not possible control scheme wise on cell phones. People will still want those.
People will still want a dedicated gaming toy for their kids and not give them a cell phone. Some people like me will just want one to play pokemon :P.