Before the smartphone revolution really kicked in. 

All teenagers/adults have a smartphone, that's killing the Vita. Nintendo just has their go to market with kids who are still a few years off from having their first phone. 

3ds sells to alot of  diffrent groups of people, not just little kids...

Try getting a teenage or college guy to play a Vita or 3DS infront of a group of girls he likes (ie: on a bus or during lunch break at school/college). Not happening. 

Looking at your smartphone though? Smartphones are "cool", playing "Game Boy" is not, it implies you're a juvenile. 

I'm not saying that's the way it should be, but really there definitely is that stigma still. At least in the USA/Canada, for sure. Probably the UK too.

Sony is running into a brick wall trying to sell handhelds to this audience, the PSP had a good first few years in the US, but it fizzled out by about mid-cycle. 

Kids get their first smartphone with age six where I live (literally every kid I see on my train to university has one). That's not the reason Nintendo the 3DS sells well

It's primarily the kids market. Look at their marketing for it and it tells you a lot about their target demographic. 

That has never happened to me, most people are actually interested in what i'm playing, but i do agree that they need to advertise the system to differnt groups of poeple, and that they can't count on teenaged guys to support the console

their marketing portays the consoles as a mario/pokemon/Zelda machine, and that what sells it. i don't know why the wii-u isn't selling, but the 3ds is bought because people like playing Nintendo 1st party games, young kids like it, a bunch of my friends have one, and i even know a few guys in their 40's that have one. The console is appealing to many demographics, and that's what makes it successful.

Sony already tried marketing the PSP in this way (to combat the smartphone problem) with the Marcus TV ads. Remember these? These are basically exactly what people want Sony to do:

http://www.youtube.com/watch?v=UqgEify4DOU

And these did get a good push by Sony. 

But it also sadly highlights the only audience Sony can rely on -- that awkard market of the kid who feels he too "cool" for Nintendo but not old enough yet to drive a car and get out of the house on his own. 

That's basically Sony's audience for handhelds in North America, and it's very, very narrow. 12-14 year old boys. By the time kids get to 15/16, playing handhelds in public ... nuh uh. Not happening. All about playing their PS/XBox at home. If they're leaving the house it's to hang out with friends and be social. 

I really expected MS to "take over" this gen, prior to their xb1 unveiling.  That would IMO have forced the Japanese companies to unite, & I imagine it would be the type of union where Nintendo took over Sony's gaming division, with Ninty's name at the forefront, but with the Playstation brand persisting.  Nintendo-Sony (the "-Sony" would be silent for the most part)  would have to be a unique partnership and also ready to sever ties if it didn't work out (maybe a 10 yr contract).  Sony handhelds would be killed off, but some Ninty games on Sony mobile products, etc.  

I personally hope it happens one day.  Imagine Nintendo's innovative design, but with Sony style & console power.   Nintendo really needs a "graduation" product from their handhelds, so either create their own netbook/laptop design portable console, or team up with another company to attract those 3rd parties & really bring back the 13-24 group they've alienated.

Well, Wii is a mere 99$, quite the bargain....I guess it just has more Vita left in it than the Vita....