"Will the tablet/smartphone replace consoles?"
Yes, if we talk about handheld/portable consoles then I do think so. It has already happened, more or less. Gaming on phones has never been this big, and some of the games we see today on smartphones are really good.
In the future, perhaps as early as the next generation of portable consoles the smartphones will have taken a large part of that industry. If Nintendo and Sony will still make a new handheld system? Perhaps. But I think that might be the very last generation. If we talk about true handheld gaming.
Nintendo has spoken of a "portable-and-home-console-in-one" as their next project. So if this shows to be true then no, it won't be affected by the smartphone market of gaming.
In short for those who are lazy: Smartphones will take marketshare from the handheld gaming industry but not the home console market.
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