And £50 games are necessarily a sign of health for the games industry?When was the last time someone was prepared to pay £50 for a Cell phone game though? Who do you know with 30 to 40 games all bought for their phone? People keep talking about how Cell phones have such a huge user base, they do, but so do vacuum cleaners. Of course I'm exaggerating for comic effect before anyone shouts at me for comparing a phone to a vacuum cleaner But my point is phones are used mostly for phoning people, playing music, or as a camera, gaming is way down the list of uses.
That aside, cell phones have a huge and growing user base and it is significant. With both your pricing comment and your number of games comment, (although, how many console buyers have 30-40 £50 games?) you seem stuck on the fact that "phones are not consoles". No they are not, but then again this is an advantage and an opportunity, not a liability. Unless, of course, you are emotionally or financially dependent on traditional stationary consoles.
Also, cell phone software does not use the old publisher/retail distribution model. If you sell 50000 £50 games or 500000 £5 games or 5000000 £0.50 games is pretty much a wash since you have removed the physical media and associated production and distribution costs. Since smartphones are not bought for the explicit purpose of gaming the average game attach rate is going to be lower than for consoles, but the flip side of this is that many who wouldn't want the hassle and expense of carrying around a dedicated games device, will carry their phone around, and these people represent an expansion of the user base. And that is arguably very notable and important.
Games capable devices, large user base comprised both by people who already frequently game and gamers of convenience, plus development environment and most importantly distribution model already in place. Of course this will be a growing segment - how could it not be? Can anyone here make a convincing case that the trend towards portable communication and entertainment will reverse? That the portable devices won't become ever more capable? What can they do in 2 years, or 5 or 10 years?
As far as this thread is concerned, no, the stationary console market won't attract any new competitors, and the reason isn't because the barrier of entry is prohibitively high.