Is this the end of the (gaming) world as we know it?

Yesterday several articles came out about Nintendo's announcement of an operating loss of just under half a million dollars.

In many of these articles, the author's posited that the main reason for this loss is the iPhone and iPad. Supposedly, say these articles, the lower prices of the games in the App Store along with the lack of needing a second special device to play them makes them more appealing than Nintendo's offerings.