Despite this news (or observation really), the video game market on smart devices isn't going anywhere. Freemium games won't disappear when they are convenient to download, easy to make, and addicting for many people. However, the smart-device market for games that aren't free but sell well will be controlled by known console game developers like EA.
Currently the hierarchy of devices in terms of revenue and profits earned from games are:
Smart Devices
Home & Handheld Consoles
PC
Leapfrog stuff
Cheap handhelds with games already programmed inside
Ouya/Texas Instrument