What does the PSP2 need to do right to compete against the likes of the 3DS and the rise of the smart phone? 

For decades, I HAD to have a portable console.  As it turns out, the PSP ended up being my all time favorite.  It had good games, it could play movies, it could play music, store pictures, and comic books.  It was an awesome piece of hardware, and I've sang its praises for over a year now on VGChartz......but then I got a smart phone.  Since then, my PSP has been gathering dust.  The recent purchase of Valkyria Chronicles 2 has breathed life into the system but that's just temporary.  Phones offer everything available on the internet, tons upon tons of apps, strong video players, and pretty much infinite amounts of entertainment.

The PSP hasn't been a failure but it hasn't been a success story, either.  But Sony intends to give it another go.  What does Sony need to do right this time to prevent a repeat of the current scenario?  Here's a few ideas.  Feel free to toss in a few thoughts.

1.  Games:  A video game console lives and dies by its game library.  The PSP needs to have a strong library of games designed specifically for the portable experience.  Bite sized games that pack a big punch.  More SRPG's like Valkyria, FF Tactics, games like Monster Hunter, and such.  Portable games that are console experiences are all well and good, but they suffer on a portable system that many break out when they're bored.

2.  Online capability:  I'd pay $50 a year with a smile on my face (maybe more) if the PSP2 could access the net with the speed and efficiancy of an iPhone or a Droid X.  In this day and age, everything has a built in browser.  The PSP browser should be powerful and not have to rely on Wi-Fi hotspot, either.

3.  Dual Analog:  This is potentially where the 3DS slipped up.  It took a little getting used to but the analog nub on the PSP works great.  Toss in a second one, and we're in business!

4.  Huge Screen:  This is another area that the first PSP excelled.  Yes, the 3DS can display video in 3D but it's still  going to be on a tiny screen.  Even most cell phones suffer from having smaller screens.  Movie buffs on the go would consider the PSP2 if the viewing experience is the best around.

5.  Aggressive Pricing:  Price it near the 3DS.  Whatever that console costs, price the PSP similarly.  The less bulletpoints that the competition has, the better.  Cost $100 more than the competition, and the battle is over before it even starts.

6.  Don't push graphics too much:  Because, as it stands, graphics on the original PSP are pretty damned good.  A slight improvement would be welcome but don't spend tons and tons of R&D on technology that won't be appreciated by anyone except a small minority.  On a relatively tiny screen, "good enough" is good enough.

7.  3D screen:  So people will say they're copying Nintendo.  Who gives a shit!  Copy them!!  This is one selling point that Sony can't afford to overlook.  No matter how good the graphics, how sharp the screen, or how good the games, there are going to be people who get a 3DS simply because they're curious about the 3D.  Sony needs to be able to say, "Hey!  We have 3D, too!"  Hell, if they're lucky, there will be those that think Sony's 3D is better.

That's all I got.  Anybody else?

wow, very well written and i agree with you completely.  i think the best thing sony can do is either price it the same or even 50 lower than the 3ds if possible.  i think if they added trophies to the handheld console that would be great.  3d screen would be very beneficial too.  one thing i think would be interesting though is if they made a mmorpg for a handheld similar to ff14 or wow.  and this could correspond to the $50 yearly online fee.  just a few additional ideas.

A F'kin miracle.

Sony had the cool and the PS games. Now Apple has the cool and Nintendo retains all the best handheld games.

Maybe they could make Tetris an exclusive, other than that????

To be fair everybody else only managed a single shot against Nintendo before being confined to history, at least Sony brought the PSP MegaCD   Go.

1. A release date

2. Touch Screen

3. Actual Sony support.

4. A competitive price

5. GAMES, GAMES, GAMES

I agree with you, I don't think the PSP2 needs a huge graphic overhaul. They don't need to push a handheld to its limits in power, it drains the battery too fast!

I have to agree with Pyro as Bill (sorry d21lewis). My first thought on this was "divine intervention." 

Sony missed it by spending too much time experimenting with the PSP-Go (which I am sure there is a Sony rep out there who does like me for ragging on). Had the PSP2 come out then, it might have had a chance. But even with all of the upgrades talked about, the 3DS have captivated everyone (except for the Mortal Combat developer). So it will be tough for any competitor to get the software needed to succeed.

Mike from Morgantown

Besides having this image above hopefully happening to Sony, I think they need to do these following things:

Thing #1: Keep being Sony. What this means is, whatever they are possibly doing now, keep doing it, because its working. 3rd parties absolutely love Sony and I don't see the PSP2 changing that unless its hard to make games for. Seeing as to how development on the PSP2 has already began for some companies,I don't think support will be a problem.

Cloud1161 said trophies and that's not a bad idea, at all.  Especially, if those trophies count, at least in some small way, towards your PS3's trophies.  A huge reason I buy so many 360 games is because every single game adds a little to my e-penis.  When I play a game and I don't get Achievements, something just doesn't feel right.  Some PS3 games don't have trophies and for that reason alone, I don't really chase trophies at all.  Add something like a trophy system to the PSP and you'll have those obssessive types buying PSP games--even when they don't really want to--for no other reason than to keep their score up.  Something like this would be damn near free to impliment, too!

And for those of you saying Sony needs miracle:  Believe me--I was going to say that, too!

If it could play all PS2 games and there was a way to get your PS2 disc images onto an internal flash drive.

The PSP2 doesn't have to beat the 3DS people to be successful, and frankly the PSP has no issue selling console, it just old that's it. What Sony needs to focus on is software which has always been the PSP problem.