Sure Nintendo might recognize smartphones as competition, but it just isn't showing. There is no debate here, its just facts. And man, the comparison for quality of games is undeniable. smartphones are riddled with horrible games, good games are few and far between. But as the closing point, even though Nintendo recognizes smartphones as competion, they aren't, and sales just don't support that. And who cares if you see someone out in public playing on their phone...they have a 3DS at home!
This is one of the funniest post I have read in a long time. Thank you.