The transition was so prominent that the American boss of Nintendo, Reggie Fils-Aime claimed Apple as one of its major competition and not Microsoft or Sony.
Sony had an impressive device in its portfolio with PSP2000, but lost its way with the release of PSP Go without adequate backward compatibility and title support. The rumored Playstation Phone from Sony that merges the touch screen smart phone world powered by Android and the gaming system of Sony sounds like an obvious winner. This will only be certain, if the device is capable of adapting to the casual games like Angry Birds and hard core games like God of War. This device may definitely have to go the route of PSP Go, with lack of UMD support but support some way of providing backward compatibility or exclusive titles to attract the hard core gamers.
Microsoft's recently platform launch of Windows Phone 7 also goes along similar lines, by integrating with the XBOX Live heavily and providing access to real-time access to the XBOX world and the casual games of XBOX Live available from the phone itself.
The major shift needs to come from the pricing strategy, as the casual games do not sell for $25 and above any more. Most of the hit games have ranged from being Free to maximum of $5. Even the games that are distributed by studios like EA, are sold for $5 and available for 99 cents when on sale (lot of times).

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