Correct. Phones are getting bigger (but thinner) compared to older phones while portable consoles are getting bigger compared to older consoles.
There’s always been a market for the large portable console, also with the promise of docking. It’s just that compute was difficult to achieve until recently, and the market for the small end has been eaten by phones, and so they only make the larger end now.
See https://en.wikipedia.org/wiki/List_of_handheld_game_consoles...