That's a possibility, but not one I ascribe to as yet, because it begs the question: where has the market gone?
And I don't believe mobile/tablets as yet, serves as a sufficient substitute for a home console device. It may in the future, but I don't think it does yet.
Right, I think when we look at what's still performing in the market we see:
1.) AAAA megablockbusters are doing better than ever, and people wolf them down on an annual basis and buy a ton of DLC and microtransactions for them to boot.
2.) Small indie games are on a strong upward trend, especially on PC.
3.) f2p games are very strong both on PC and mobile.
4.) Digital game downloads are healthy, be they paid iOS apps, Steam games, or major XBLA titles. The smaller titles on these systems don't always do so hot (there's a sea of failed XBLA games and iOS paid titles), but there are still a lot of strong points to look at.
However, much of what made up the console and handheld market (retail games of a more modest scale) have had their market evaporate, and the casual market has left both handhelds and home consoles in favor of mobile or select f2p/browser experiences.
Outside of the PS4/XB1 there isn't a great place to play category #1, and until there is, they still have a market. Looking like the crappier, more expensive system to play them on however is not conducive to good sales.