Bigpoint CEO Heiko Hubert warned that developers of traditional handheld games face a crisis as iPhones and Android devices tempt away their audience.
In his keynote speech at London Games Conference last night, Hubertz warned against relying on solely one platform to build a games business - especially those platforms with minimal online connectivity.
"All the developers making games for the Nintendo DS and PSP are in trouble," he said.
"No one will want to buy games on them because they are playing on smartphones or iPad."
That said, despite the rise of mobile games, Heiko warned that app stores are cut-throat to operate in. According to his calculations, "each game on average on the App Store only makes $5k".
"You only have a hit if you get in the top 25, and stay there, to be successful."