I don't see it. Nintendo survives due to the strength of its IPs such as Pokemon. Smart phones did a number, especially on the younger market in regards to handheld devices. So many parents I know much prefer let their kid borrow their phone, or just load up a bunch of games on an old phone and give it to the kid when they upgrade.
I think Nintendo going to the Switch is the biggest sign that handheld market is tough to survive in and Sony look to be done with it focusing on PS4 and now VR.








