I'll not buy another dedicated handheld again, my phone and tablet cover my on the move gaming needs now. I always used to have to make a conscious effort to take my handhelds with me before, I now naturally always have my phone and my tablet half the time so they're ideal platforms as you do have them in your possession naturally more than you would a handheld gaming system. Those devices are also naturally charged up by routine unlike handhelds which I often used to forget to charge.

For these reasons I see older gamers using other devices predominately. There is still a market for dedicated handheld gaming in the young gamer market and some of the older gamers that enjoy genre's not suited to touch devices.

It could be a difference due to age, but I know a lot of people with tablets and few people who carry them with them; and the primary uses for these devices seems to be to surf the web while watching TV or in the Bathroom, or to read ebooks. Being that people carry their smart phone with them everwhere, the damage done to dedicated handhelds from smart phones is probably an order of magnitude greater than the impact of tablets; and, even with (roughly) half of the people in western developed nations owning smart phones, sales of the 3DS are still very strong.

Much like how there is a high percentage of people who own two gaming consoles (or a gaming console and a gaming PC) there is no reason to believe that people won't (try to) buy a dedicated handheld system and a smart phone or tablet.

I think they are some what different markets. Of course, people can only spend their free time doing so much, so essentially any thing that takes up a persons time will compete against something else. It is not a black and white war, while it still will compete with each other. I do expect a decline in the amount of portable gaming consoles based on the data of both of them lagging to some degree.

At least for myself, I was always a console guy for the most part. My Nexus 7 and Galaxy S III if anything has taken time away from consoles. So clearly it is is not something that needs to be worried too much over. I can play my final fantasies when they were great on ps1 and still get my Halo 4 and Bonderlands 2.

People say they are different markets, but I'm not so sure. I picked up a Kindle Fire HD 32GB this week (three days ago) and I have to say I'm mightily impressed. I already have a 3DS XL, but to be honest I was thinking about a Vita before I got the Kindle. Now, I wouldn't buy a Vita. This is the perfect multimedia device, with some fun games (Football Manager is coming soon, Bejeweled, Tetris, Sims, Angry Birds, etc are already here) and I've loaded it up with movies and music. Combined with 3DS for dedicated games, I'm covered on the go.

But I'm not sure, with 3DS at £120-160, and Kindle from £129-199 (the non-HD Kindle is £129), how many people really would choose 3DS instead. Sure it's got Mario/Kart and Layton, but I think many people will happily sacrifice dedicated games for the plethora of apps, big HD screens and multimedia.

Put it this way, I'm known as the techie of the office in work. My editor (I work at a newspaper) asked me what she should buy her 8-year-old grandson for Christmas - a Kindle or a Nexus 7. 3DS didn't even come into it, and I said 'what about 3DS'. 'He wants to play Angry Birds' came the reply.

I love dedicated handhelds, but this is a scary time tbh.

You hit the nail on the spot here.  During a b-day party for my 8 year old, roughly half the kids were gaming on hand-me down iPads and half 3DS.  Now that the econo-tablets have reached the same price or even cheaper than 3DS or Vita, I am afraid of what effect that may have on the market.  The 3DS can take a slight shelter on the fact they can do glasses free 3D, but their card of having a lower price than tablets have just gone out the window!!!!