Nvidia has published a slide showing how the performance of its graphical processors will rise in the coming years.
Check that mobile line at the bottom right: essentially what Nvidia is saying is that mobile phones will be packing Xbox 360-quality graphics sometime in 2013. Although note, consoles will be ready for their next step on by then, so this isn’t a case of mobile overtaking console – just overtaking the capabilities of the current generation of consoles.
Anyway, the danger here is that console game developers think ‘Great! We can make loads of Call of Duty-style games for phones now, they’re finally up to the task…’ The most interesting and successful mobile games will always be those designed for the medium – which means its controls but also its usage patterns.