I mean DS has already "won" but if they dropped the price of the PSP to $100-$120 for both models (Go and 3k) then I think they can gain some market share back.

Seriously the handheld war is finished now

we are hearing rumors about a DS2 & PSP 2 everyday

this gen is done & dusted for handhelds marketshare wise

there is no need for PSP to attempt to improve now

and its very successful & doesn;t need saving.

they need to offer more appealing games. Not everyone wants to play shooters. Especially not on handhelds where they aren't as good.

PSP sold very well , still going strong in Japan.

Lack of Software sales in the West killed it

PSP sales are incredible, the thing that killed it was the fact that it is a handheld, and isn't made by Nintendo.

Nothing Sony do at this point is going to change much, tbh. A price cut would increase sales, but decrease profits becauser the attach rate is very low, and it wouldn't boost sales all that much. New big games are a good way to push some more, the recent collapse in the West is because it had no games to drive sales

If they can drop the price and get some killer apps out. Bundling would go a long way too, it has some really great games as it is but most peoples systems are collecting dust.

Games won't do it.  PSP had a better 3rd party lineup than Wii last year even plus 1st party stuff like Gran Turismo and LittleBigPlanet, and almost everything still bombed.   A pricedrop might spur some sales, but honestly I think the platform's beyond saving at this point.  Time to move on.

1. The PSP was successful
2. The PSP will never "dominate"

PSP's fate is set in stone, much like pretty much every device at this point (except the interminable PS3 vs 360 question)

PSP has done what no other handheld could.