Multiple reasons ...
1) Sony's strong position with the Playstation and PS2 along with Nintendo's weakening position with the N64 and Gamecube caused everyone to assume that Sony could easily take away Nintendo's handheld market.
2) Although the PSP lacked the kinds of games that people wanted from a portable gaming machine, the PSP was hacked early on and NES and SNES emulators allowed gamers to get these kinds of games. It was ironic at that point in time that the PSP was being purchased primarily to play Nintendo games.
3) Strong third party support, most western publishers and many Japanese publishers bet heavily on the PSP leading to many very strong franchises being available for the PSP and not for the DS.
There are more reasons but these three stick out in my mind and I would argue points (1) and (3) have been completely reversed to favour the 3DS over the PS-Vita.
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