Yes, because the same experiences can be had for a fraction of the price and with better convenience.
Will mobile phones replace the console/traditional games market?
No, because they don't offer the same experiences or in the same environment.
Although the mobile market will be having an effect on the traditional games market, it's not responsible for studios being shut down. All the studio closures are something that's been building up over a much longer period of time, for various reasons.
Duck Up! is out now on the iPhone and iPod App Store