To a certain extent, what the PSP and PS3 have destroyed the Playstation brand for consumers and videogame developers.
Back in the day there was a saying that "No one ever got fired for buying IBM" and you could apply a similar saying to the videogame industry that "No one ever got fired for supporting the Playstation" ... The reason for this is simple, for over a decade the Playstation consoles sold more hardware and software than all of their competition combined; and regardless of how mainstream or niche your game was, your company would see the best sales and the most profit by focusing on the Playstation. While 20 Million in sales may not be that bad, having developers question whether they should give exclusive support (or any support) for future Playstation systems is a very serious blow.
The damage of the Playstation brand to consumers can best be summed up by pointing out that most people who bought a PS2 (potentially as much as 66%) will not buy a PS3
