The two video gaming giants are back in the ring...

At events like the Tokyo Game Show, thousands of avid gamers are flocking to experience the newest game consoles before they're officially launched later this year: Sony's Play Station 4 and Microsoft's XboxOne.

Together Sony and Microsoft take up almost 80 percent of the world's console market.

But consoles are no longer the only contenders.

Enter...the mobile device.

Over the past five years, the percentage of U.S. households using wireless devices for gaming jumped almost 40 percentage points, far outpacing console games.

And mobile games have become brands in their own right.

Developer GungHo's mega-hit "Puzzle and Dragons" boasts almost 20 million downloads in Japan.

GungHo's market cap blew past Nintendo's earlier this year, underlining to many the rise of mobile gaming and the decline of some console makers.

So how worried are the console big boys about their smaller, more agile rivals?

Well, they insist there's room for everyone.

(SOUNDBITE) (Japanese) JAPAN MARKETING MANAGER, SONY MARKETING, MAYAKO FUKUNAGA, SAYING:

"There are a lot of devices out there. Some people want to use the Playstation, or maybe also their smartphone for games. And if you can't meet the customers' needs, you are limiting their choices. We want to support people who are serious about enjoying their games or any kind of visual content, no matter where they are."

For now the response seems to be - if you can't beat them, join them,

Sony is supporting the development of indie mobile games like Octodad, designed by a group of students at a university in Chicago.

And Microsoft has come up with the Xbox SmartGlass - an app that allows gamers to connect their Xboxes to smartphones and PCs to blur the lines between consoles and mobile gaming.

(SOUNDBITE) (English) CORPORATE VICE PRESIDENT, MICROSOFT GAME STUDIOS, PHIL SPENCER, SAYING:

"I think it's probably fair to say that we have more people playing games today than we've ever had at any time in our industry across a ton of different devices, from phones to tablets to fablets to laptops, PCs and gaming consoles. I think that's a great opportunity for us in the gaming business, because you have this just increasing funnel of people that are not only spending time, but more and more spending money on all kinds of different devices playing games."

All the new hardware, and software, is good news for gamers who have more choice than ever.

But it's likely to force changes on console makers - who, ready or not, will have to join the mobile revolution.

ENDS