Summary
I find it interesting that as gaming sector pundits look at console units sold, the handheld market is rarely mentioned. As a result, it hasn't received it's due until now because of the DS shortage. That signifies that there's plenty more growth & development to come in this space in 2008.
Analysis
The DS has been a hit since it launched. Now, because of the Wii's success, people are finally taking notice of the hot handheld. Funny thing is that I can see that handhelds being hotter, and having greater penetration, than consoles for the next few years - at least. Shortages of the Wii, inconsistent hardware of the Xbox, and lack luster software for the PS3, all make for compelling reasons for parents, kids and gamers to go mobile with a PSP or DS. The college student may also prefer to get their gaming fix while not using up too much space with a console in the dorms. You only need one console per floor anyway, right? But with wi-fi integrated, anyone can play anyone, anywhere without being connected to the internet. You only need to be a few feet away to play against them.
I'm sure there are those that disagree with my statements above. But to put it simply, you can have 4 handhelds in one household, and have a console, too. The kids play Nintendogs, Dad plays Zelda and Mom plays Soduko on the DS. Then, they can all play Wii Bowling when the mood strikes (no pun intended) or company is over. You can see that a console experience is different than a handheld. The PSP is more like a console, but does have some benefits in its compact size and portability. Soon, it may also enable gamers to take all or part of the console experience with them. All those considered, I stick with my sentiments that handhelds are just starting their growth cycle and will ramp up quicker than consoles overall, especially with lower price points - and few accessories to purchase - than consoles.
