It's like Frankenstein ... they created it, now no one can control it.
It's completely destroyed the casual and much of the mobile side of the market ... you have a whole generation of consumers that don't feel they should pay for mobile/casual games.
Sony and Nintendo do over charge for their handheld games though on the other end of the spectrum. $19.99-$24.99 (max) is a fair price for a handheld game.