It never was a threat. It was a false threat and the video game industry seems to fall for false threats all the time. It's like when Square-Enix thought traditional JRPS's were no longer relevant because Call of Duty was selling in the 20 million range. No one seems to have learned that better sales do not mean there's a threat. What happens is that publishers feel like something like mobile is a threat even though their own sales do not suffer and as a result, they change their business tactics and try to reinvent older franchises in order to appeal to the bigger crowd. This ends up backfiring when a known franchise fails to catch the attention of the bigger crowd and alienates the dedicated fan base.
This is what happened with Resident Evil 6. Capcom felt that instead of trying to innovate like with Resident Evil 4, they instead needed to copy everything that has been popular in the Western market over the previous 5 years because some marketing executive decided that survival horror games became irrelevant during that time. A lot of the younger shooter fans and Gears of War fans ignored Resident Evil 6 since they recognize Resident Evil as a survival horror series while Resident Evil fans quickly sold their copy of the game when realizing that it's less of a Resident Evil game and more of a ripoff of everything else.
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