Mobile Games - Where Exactly Is The Problem?

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So are the problems facing the Mobile Games Industry (see Mobhappy) simply down to not treating mobiles games as seperate from console games? Tom Hume thinks so, and addresses the original points over at his blog: "Mobile device will always be an inferior game platform. Sorry, I don't buy that; or has my chess-set been obsoleted by my Gamecube because it's only got a resolution of 8 x 8?"