All this stuff about smartphones, it isn't smartphones, it's price.
Anyone realize when the DS Lite came out and it took off in sales it debuted for $130?
Main SKU's of the systems on the market are a $300 system thats been out almost seven years, a $250 system that's been out six years, a $250 handheld, a $170 handheld, and Wii is $150 but is basically a legacy console now.
This wouldn't be such a bad few months if companies would have factored in price in their decision making, but it's not a decision at all. They add bigger propietary hard drives to their consoles to justify never dropping the price, when 99% of the people don't need near that much space and would be fine with a SD card, or a smaller hard drive for their digital purchases.
All these gimmicks like 3D and touch added to handhelds, when Nintendo probably could have made a killing on a reborn Game Boy brand with just one screen and no 3D with the same amount of power and a focus on digital, selling for $120 or so.
It's over their head though, there's no one to blame but themselves for this situation. A hard lesson to learn, but eventually they'll understand it when they feel it in their bottom line.