Japanese developers are ahead of the curve in realising their mistake in doing so, and the reaping of those consequences is still happening, and if anything is accelerating, not slowing.
I know people like to pretend that Japan is its own special snowflake and mobile has no impact on REAL GAMES for REAL GAMERS, but we can already see the complete evaopration of single platform exclusives that aren't wholly funded by a platform owner. Third parties want viable dedicated platforms more than ever, because the uncomfortable future looming isn't one that can sustain the types of games they want to make.
e:
Because that's the choice that is going to have to be made; what's less offensive to your sensibilities? Slightly underpowered Kiddy-box for babbies with gimmicky controls made by mean old nintendo that everyone hates, or a hugely underpowered box with no controller at all, where nobody cares about your voice acting talent or licenced music because they're not playing with earbuds in, noone cares about your oscar-worthy plot because theyre playing for 5 minute stretches, and nobody cares about your game hours value propositions, because they're not paying more than a few bucks upfront.