[fjtorres]

The exact same thing is happening over in handheld gaming. Cellphone and tablet gaming is decimating the dedicate handheld gaming consoles. Nintendo recalibrated and dropped the price of the 3DS to better focus on its core kids' toy market. Sony loaded up its Vita to near-PS3 levels and went for hardcore gamers. And that seems to be *all* the're attracting.
Nintendo's approach seems to be a more sustaininable approach but the days of gangbuster sales and profits are likely over for their handhelds. But simple and cheap is keeping them in buiness whereas Sony's mobile gaming future seems to be destined to move to the phone gaming platform.

With ebook readers, the larger more expensive models are likewise the first casualties of multi-function commpetition but the smaller and lighter (and way cheaper) eink models should survive to serve avid readers. The future of eink readers has always been small and cheap. And I still expect to see them on blisterpacks along checkout lines.