I think Sony should just ride it out with the PSP as long as they can and then just call it quits when it comes to handhelds. I would like them to just focus all their attention on home consoles.
I have Nintendo to take care of my handheld gaming, just as they have for ~20 years of my life..
I don't think it will happen though since they just made that Google deal.
I am expecting the new PSP to be an Android based phone.
iPhone = Great gaming device. Don't agree? Who cares, because you're wrong.
Currently playing:
Final Fantasy VI (iOS), Final Fantasy: Record Keeper (iOS) & Dragon Quest V (iOS)