Are Sony and Nintendo in big trouble?

Are Sony and Nintendo in big trouble?

During an interview with MCV this week, Jeff Karp, boss of EA's casual division EA play, has warned Sony and Nintendo that the traditional portable gaming businesses are facing stiff competition from mobile phones and tablets.

He said: "I think it (PS Vita) looks like a great device, but the real challenge for all game handhelds is how they stack up against mobile and tablets. After all, how many devices do people want to carry?"

With smartphones and tablets continue to dominate; both Nintendo and Sony are feeling the pressure to fight for consumer’s money in the increasingly crowded handheld gaming space.

Nintendo is certainly feeling the heat in the handheld market. Having shifted only 700,000 3DS units in the company's first financial quarter, it opted to slash the portable's price only six months into its lifecycle, a move that puts PS Vita in a tough position, analysts said today.

Karp's comments are similar to those given by Crytek CEO Cevat Yerli earlier this month, when he said: "I love Sony as a company, and we have great relations with them, but the Vita is going to have a hard time against the next generation mobiles and all the tablets. The Vita is an absolutely fantastic platform but it will have a hard time, and it might be too late."