What is more expensive to produce a console game or handheld game

Depends on the production values. Some handheld games get plenty of love pumped into them, while some console games are just cookie cutters of better games with movie tie-ins.

However, it is a fair assessment that current console games, with the higher standard of graphical quality and reduced likelyhood of hardware restrictions are likely to cost more. This is further reinforced by the fact that many older games are being re-released on new portable game players, in which case a port is generally much cheaper and easier to produce than an entirely new game.