If not even Playstation brand with PS2 vs. N64-like graphics and a lot of other uses (MP3, video) was unable to do it, I doubt anything can o_o

I think one of the big reasons that PSP has been considered such a failure and DS such a huge success are the expectations that were set by analysts, fans and the companies themselves in 2004. In 2004 it seemed everyone was predicting Sony was going to absolutely crush Nintendo, and that Nintendo wasn't going to have a chance. The PSP was the greatest handheld ever and the DS was joke; Nintendo was doomed.

In the absence of those predictions people would see that Sony has made the most successful non-Nintendo handheld ever. In the absence of those predictions people would see Nintendo losing 33% marketshare.

But somehow almost everyone got into the mindset that Sony dominating handhelds was inevitable, and the fact that it hasn't happened makes everyone think Sony has failured.

The SEGA iDream, They will aquire rights to the Pokemon series from the Anime Company that owns it [or whatever...]. The handheld will be released 2024. It will OWN!!!!

EDIT: I think if the PSP wasn't such a piracy fest it could have atleast Had 40% market share. Then SONY might have been able to make an even bigger move in terms of MarketShare with the next Handheld.

The market for mobile phone games in 2008 is almost $5 bn (software alone)
I expect it to grow to 7 or even 9 bn. in 2011 representing a market probably bigger than any handheld from Nintendo or Sony.

I also expect Sony will be number two in 2011 and Nintendo to be behind Sony.

Handhelds will become less important than today because consoles will become cheaper. No console generation before has been as expensive as the current one propelling handheld sales up into heights never seen before. The next console generation will be cheaper again.

im sure weve seen better handheld sales

things can change with time, so i would not say never. next handheld generation could be a completely different story. also handheld market is a big market so i guess we might even see a 3rd company trying to get into it.

Handhelds won't become less important, consoles can't be played on-the-go, that is the appeal of handhelds.

At some point I do think a DS or any hand held will need to become a phone also and a phone can take pictures, see videos, etc. When people realize they want more and more portability, people will see a phone on their left hand and a handheld on their right and say "why do I need to carry both?" but I don't see that happening until two more generations or so.

IMO the extremely high prices of the current console gen. are the reason for the stellar handheld sales over the past 2 years. In the years before Nintendo typically sold 20 m units but in 2007 it sold 30m and Sony an additional 15m PSPs. I think those figures will shrink when consoles are back in the $120-$250 range.

How fast the mobile phones make the typical gaming handheld obsolete just depends on the steps Apple, Nokia, Samsung..... take in the next years.

Nothing is certain.

If apple decides to add a built-in and more dedicated gaming platform into a new phone, it should easily beat Nintendo handheld sales in hardware.

The only way to save non-Nintendo handhelds is for Jesus himself to return to the Earth and support the non-Nintendo console. Unfortunately, Jesus is a big fan of Pokemon...