There has been an upheaval in the mobile games market in the last couple of years as Sony and Nintendo give way to newer players like Apple and devices running on Google's Android software.

According to mobile analytics firm Flurry, Nintendo only has 36 percent of the portable game market in 2011 and 6 percent for Sony's PSP. The two gaming giants have been overshadowed by their mobile phone counterparts, Apple and Android which has 58 percent of the market. This is a remarkable turnaround considering that in 2008, both iOS and Android only had 19 percent of the market compared to Sony's 11 percent and Nintendo's overwhelming 70 percent.

"The most striking trend is that iOS and Android games have tripled their market share from roughly 20 percent in 2009 to nearly 60 percent in just two years," Flurry analyst Peter Farago writes in a company blog post.

"Simultaneously," he continues, "Nintendo, the once dominant player, has been crushed down to owning about one-third of market in 2011, from having controlled more than two-thirds in 2009."

The dramatic turnaround stems from a number of factors that could spell trouble for Sony and Nintendo. Apple and Google have managed to capture the market with their cheaper alternative to Sony and Nintendo's business model. Portable gamers had to pay for Sony and Nintendo's hardware which could cost $200 and as much as $40 per game. In contrast Apple and Android games sell for less than a $1 in app stores with free games and extra levels.

"As a result, the days of paying $25, or more, for a cartridge at a retail store may soon end," Farago predicts.

"Further," he adds, "the installed base of iOS and Android devices has not only reached critical mass, but also continues to grow at unprecedented rates."

Another factor adding to Nintendo and Sony's troubles is the increasing hardware advances in mobile phone technology. Apple's iPhone 4S, Samsung's Galaxy Nexus and even the new Nokia Lumia all offer good graphics performance. Nvidia has just released a new quad-core processor that can be adapted to smartphones for a better gaming experience. Touchscreen gaming has also become a feature that Nintendo and Sony hasn't been able to adapt to their consoles.

Nintendo's portable gaming console is its bread and butter. Because of waning sales, Nintendo is posting its first loss- about $246 million- in 30 years. The future of gaming is increasingly in more digital means of distribution and manufacturers will have to adapt or sink, a problem that other industries like music, film and television are already facing. Sony is set to launch its next generation handheld console, the PS Vita early next year. Nintendo is also releasing the Wii U with a touchscreen controller. Both companies are hoping these new consoles will get gamers back into the fold but they are increasingly holding on to a tenuous grip on an industry that has already moved on.