[potatolicious]

You're right, but it's also why I think Nvidia's idea can work.

This product is not competing with tablets and phones - that market has been lost long, long ago. After the rise of smartphones Nintendo's entire portable market vanished very quickly. Casual gamers are no longer interested in carrying around (and paying for) a purpose-built gaming device. When you want to blow away 15 minutes on the bus you won't ever pick a Nintendo DS or PSP over your phone or tablet.

The remaining bit of the mobile gaming space is strictly hardcore, and that's currently underserved - there are a substantial number of gamers who want a mobile device that can actually play console-class games. The only player in this space right now is the PSP, and the execution on that device is poor enough to warrant new competition in the space.

A device with great battery life (good enough for a plane ride), a solid selection of games, and most importantly, a solid modern software platform (read: Steam-like), would do well. The only portability requirements here are "fits in your bag".