The NY Times is running a story about the effect Apple is having on the console gaming market, making Microsoft, Sony and Nintendo worry that consumers will be satisfied playing games on devices that aren't necessarily focused on gaming
"The concerns highlight an accelerating shift away from hard-core games, which have traditionally driven console sales, to more casual ones played on cellphones. Of the 758 new game titles shown at the Tokyo Game Show, 168 were for cellphone platforms — more than twice as many as in the previous year. ... Apple's assault could even eat into sales of home consoles like Nintendo's Wii, Sony's PlayStation 3 or Microsoft's XBox, as game-playing quickly becomes centered on cellphones. Many in the industry say that Nintendo, Sony and Microsoft need to explore more radical changes to their businesses, including an emphasis on software rather than hardware and a better way for users to download games. 'As a platform, the cellphone has the biggest potential, because everybody owns one,' said Kazumi Kitaue, chief executive at another game maker, Konami Digital Entertainment. A family with three children might buy just one Wii or PlayStation to share, but those children will probably have cellphones of their own and download and play games, Mr. Kitaue said."