I don't see Sony or Nintendo getting out. I guess I can see Microsoft getting out maybe.
For me, games on phones and such don't replace console/PC games. I much rather buy and play a God Of War or Mario game over Angry Birds. I understand that developing console/PC games are extremely expensive for companies. And if they don't sell well those companies can have to close up their doors. But most games that are good games do become profitable. Games like Halo, Uncharted, and Mario are well put together and sell. Games like MoH Warfighter and RE6 aren't very good and don't meet expectation for both the Publisher and Consumer.
The Vita isn't a fail yet imo. It is failing at the $250 price point same as the 3DS did. Whether the Vita will pick up when it gets a price cut is unknown. But it's hard to sell your handheld at the same price as your home console.
The Wii U hasn't been out long enough to know if it'll be a success. It may not outsell the Wii, but it doesn't have too either.
People tend to look at the PS3 as a fail as well. Partly because of it's launch and loss in market share. However it did successfully push Blu Ray and beat out HD DVD. And the PS3 still has years left in it and countries that still are PS2 heavy to sell it in.
But something has to change in the way we buy games in general. The $60 price of new games is a little high for companies to expect consumers to be buying multiple games in a span of 4 to 8 weeks. And people are uneasy on buying new IP's at $60 as well. Going with the block on used games with further turn away consumers imo.
I'd like to see both Sony and Microsoft make a big push for digital games. Yeah Sony has been selling many new games over PS Store same day as the physical retail copies. But they got to...
A) Cost less
B) Be able to preorder sooner.
If they are retailing for $60 when they release in retail stores, they need to be $50 over PS Store. Sure they lose $10 at first, but that Digital copy can't be resold to Gamestop either. And They got to give consumers more than 2 weeks notice that there will be a Digital release. I can preorder new God Of War after last E3 but don't know as of yet whether they will even sell it over PS Store at launch. That needs to be fixed