handhelds are shrinking because kids would use ipads, iphones to play those .99 games or even the free one. quality handheld games are becoming less and it is only Japan who are really pushing for the handheld industry to be relevant.
next gen handheld - i'm not sure Sony would push for one due to its financial issues. Nintendo - they won't push for superb graphics as it could cost the next gen handheld to be too costly and they won't benefit from it.
the fusion or even the Wii U gamepad and now they can use 3ds as a controller is a good option. Nintendo could go for a better console higher CPU and graphics for the console and the gamepad/hybrid 3ds as a portable. the games i don't know - maybe games stored on the memory on the gamepad maybe SD card would store the games they wanted to play outside of their house.
speculations but that is the only thing Nintendo could do for the handheld games. it could also be backwards compatibility which would help sales in a sense. androids and iPads are all over the US so kids would normally play much in it outside of the house. Nintendo's best bet is really somewhat of a fusion even though i also don't know if it is really the thing they wanted to move forward. we have a thread about it and nobody can really have a good guess.
