[ThatPlayer]

I don't even think smartphone games were the killer, just smartphones in general. The audience isn't looking for specifically for gaming; they're looking for entertainment in their pocket. With smartphones that can be YouTube/Netflix/Facebook/etc. Those are good enough that you don't need games.

[cubefox]

Okay but that possibility would also predict that gaming in general would go down, not just on PS Vita and 3DS. It's true that the overall PC market shrunk (smartphones could replace PCs for many people) but I don't think the home console market was affected.

[johnnyanmac]

It may have been? It's a much more complicated story. Consoles haven't decreased, but they have notably stagnated for the past decade in terms of sales. Gaming overall only goes up because the mobile market surged to parity with consoles (in terms of revenue) over the 2010's.

But I doubt that was due to phones. It's more factors like set top boxes, "smart" TV's with built in streaming apps and casting, and the decline of the need for DVD/blu-ray players.

I remember the days of the PS3 where many bought it simply because it was the cheapest Blu-ray player (which is saying something, given its slow adoption rate and infamous "599 USD" reputation), but consoles as a multimedia device has definitely fallen off. It's also infamously one of the worst market reads in the industry when Xbox One decided in 2013 to advertise as a set top box on its reveal over a gaming console.

But unlike handhelds, that lost "non-gaming" market did get made up for with a growing market of dedicated gamers (indicated by games continuing to sell increasing numbers of copies). So it simply evened out instead of trending downwards.