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No, it won't fail.

Smartphone games are still so different than console games. It's an ocean of difference in sophistication, and the context and usage for the devices is very different. Therefore the demographics are also different. Therefore I believe there are many core gamers out there who love Nintendo but hate phone games.

I've never seen or heard about a smartphone gamer playing on anything even remotely close to X360 graphics. Even on tablets that market just doesn't exist.