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Oh dear goodness, not this again.
Smartphones are not taking over the gaming market...its that simple.
If a gamer wants to play games, they will play games on a video game console.
If they want to play with toys, they will use a smartphone.
The 3DS is selling great now, if smartphones were the answer to portable gaming, wouldn't sales be terrible? You know, since millions of people have smartphones.
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I didn't say the gaming market or anything about the 3DS
edit: you kinda left out the part where the 3DS was barely selling in the U.S. until the slashed the price.
People can either download a game that costs a dollar or two on their phone these days over spending hundreds of dollars on a device that only plays games.
The market is shrinking for portable game systems while smartphones is constantly growing. Dont try to deny that fact.