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Mnementh said:

Why? While I see that handhelds aren't as big as they were, it is not visible that the market has complety crashed. The handheld lives on. And the market shrink will happen to home console too, in part already visible although Nintendo is taking most of this impact for now.

But game production on handhelds uses up so much less resources. If you look around, every dev says he needs millions of copies to break even. Projects failing that get cancelled sequels or development studios get closed. That is on home console. If we are looking to handhelds we see a lot of small japanese companies, that produce games for Japan only. They only return 100-200K with exceptions here and there. But still these companies keep on producing. So deceloping for handhelds is obviously pretty cheap, guessing from the numbers sold probably around 5 times cheaper, maybe even more. So let's be conservative and say three times only. Do you really think, that Nintendo could put out three times as much games on handhelds while dropping home console would be that bad? And probably with better results. I have the feeling, that quite some WiiU games are sold at a loss for Nintendo.

Handheld market is going to shrink by a huge amount next gen.

 

Very few games require "millions" to turn a profit. But that is the reason Indie games exist for devs to try risky new ideas