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The low hardware and software sales coupled with the failure of UMD means that, when compared to certain people's expectations (Sony, Analyst, Publisher [EA], and fans) the PSP is a failure ...

In a more general sense you have to consider the PSP to be a moderate success though being that it has survived 2 years on the market, still has (reasonably) strong third party support, and has sold more systems than any non-Nintendo portable system ever has.