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Rainbird said:

The NGP’s 5-inch screen is one of the console’s major draws, a feature Sony chose to pursue after the failure of the slim, light PSPgo proved portability isn’t the bee’s knees.

The failure of PSPGo is not in the screen size. You don't go and completely remove the ability to play existing titles (UMD) and charge $100 more and expect to sell spetacular.

Though, it probably would have sold a bit better if it didn't have to compete with PSP-3000.