But realistically, there’s always been three categories to personal compute and gaming.
For lack of better words, mobile, portable and home use.
Mobile was the gameboy and now the mobile phone.
Portable back then was the game gear and sega nomad. Today it’s the switch, steamdeck, and for a while the PSP and PS Vita. These provide cut down versions of home console games or better fidelity than truly mobile.
Home use being permanently plugged in like the SNES/N64.
It’s not that the small handhelds have gotten bigger, it’s just that they’ve stopped making stuff in that smallest category.
The fact is that mobile phones have taken over that mobile market completely. There’s no space to compete so that market is dead for game console makers.
This has been the trajectory for decades now.