Perhaps this could have gone in the 3DS thread, but I think this comic brings up a good point - the mobile platform for gaming is your phone now. The success of the iPhone and to a somewhat lesser extent Android is proof of that.
There are tons of $1 games that get bought, downloaded, played a few times, and forgotten. And at only a dollar, who the fuck cares? Hell, there are some free ones that are better than a $40 handheld game.
However, I still don't see a cell phone as a good replacement. Especially now with so many touch screen only phones. I loathe touch screen only controls for any game other than Bejewled. Perhaps the NGage was ahead of its time. Would it have survived if all the games had been cheaper and distributed digitally instead?
I guess the difference is that the Vita and 3DS still strive for those games that require you to sit and play for a length of time, vs a mobile phone game that may focus more on short 'pick up and play' type of games.
I seriously hope that the handheld console market never truly dies, but with the way things are going, who's to say?


