We will never see handheld sales like last generation with the DS/PSP again... ever. But there is still a market there, albeit a smaller one.
This situation is changing rapidly, only 3-4 years ago it seemed like a matter of time before Microsoft announced a Xbox handheld and now that seems a ridiculous premise. Sony will most likely never put the $ into R&D of a handheld again after the Vita and even Nintendo who has dominated the handheld industry is hush hush.
For this reason the NX, if it is what we think it might be could be the answer. Imagine a smaller version of the WiiU tablet that went online from any WiFi spot that docked into a powerful home console and was an extension of the games you played on your TV. Well that may just be different enough to work....
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