Android isn't really a suitable gaming platform, it has too much variety in hardware and resolutions. The iOS platform is very suitable though, and is making large waves. Whether it will be able to compete against standard handhelds, I don't know - I would say that if it weren't for the 3DS, then yes, but the 3DS looks like the proper path to avoid direct competition.

I understand your point about hardware spec differences, but for the most part, Android requires a certain minimum spec. Even phones that got  got the 2.1 update aren't safe from being left out from the 2.2 update. I guess it comes down to picking an Android version to develop for moreso than catering to the hardware. Android is generously easier to program on than the iPhone, extending itself to a much more widely accepting development community. I do agree though, that the 3DS is in league of its own, and no reasonably priced phone is going to be able to compete.

Lol what nonsense is this?

All Nintendo has to do is throw Bobby a billion for CoD exclusivity or give him a portal for CoD and Bungie online. Give Ubi a couple hundred mill for Ass Creed and they're set. Of course they wont because they like a real gaming fight.

Meanwhile MS and Sony have to find some way to upgrade their consoles graphically as well as bundle Kinect/Move at a reasonable price for the next gen and have strong enough 1st party to support both motion control and classic controls.

If Nintendo can thrive on 1st party alone, motion and classic controls, what will they do with just a little quality 3rd party support?

Even Nintendo's B sellers like Zelda, Brawl and Galaxy would be considered mega hits on 360/PS3.

tldr?

SMB 1, 2, 3 and World are available on the virtual console at Wii's launch -> fastest selling system of all time

NSMB Wii releases Holiday 2010 -> biggest holiday sales of all time.

Conclusion. The combined strength of MS and Sony first party plus (near) 3rd party exclusivity still can't beat a 30 year old game. If MS and Sony's PC devs think they can sustain real arcade gaming on Kinect and Move whilst satisfying non-arcade gamers they're living in a dream world.

Hopefully they'll take their Quick Draw Mcgraw cutscene not-an-actual-game bullshit with them.