I totally agree with ParanoiaDragon. I know that the big bucks are in casual games these days but saying that Android & iOS titles are competing with Sony & Nintendo titles is kinda like saying that big budget FPSes and WRPGs on the PC are competing with crapy online flash games. On some level they are, but I don't believe their audiences overlap very much.
Yep, games that are downloadable on WiiWare or the DSIstore compete with games on IOS or Android. Retail released 3DS and Vita games are created on an entirely different scale right now, than downloadable games for smart phones.
Are they competition, sure. But it's not exactly the same target audience for their core business. It's like asking if smart phones compete with PCs, in theory they do. They can offer many of the some functions as a PC. But two different core markets and different design goals.