Given the amount of people making games for smartphones and tablets it was sure to make a dent. I mean now we see huge corporations like EA, SE, etc with thriving mobile divisions. Those dollars used to go to handheld games. Not as much anymore.
Large names from the game industry means that those experiences will over time be much more like what we traditionally think of as console games in some aspects. This is why competing on the same value system will be a losing proposition. Too much competition. If the pace at which Nintendo Makes Wii U games makes it apparent they can't compete like that.
This is when Nintendo should repeat to themselves the philosophies of Gunpei Yokoi such as lateral thinking with withered technology. That will be the route to finding something that will compete on an entirely new value system.
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