The PSP isn't a failure in the grand scheme of things as it is, or very soon will be, profitable. I think a lot of people are underestimating what the new PSP model is going to do for sales. It won't be a DSL-like boost, but it's going to be a significant (and permanent) increase in sales. Most of the issues associated with the PSP are being taken care of and there are new features being added.
The one issue not being addressed is the overall impression that the system lacks any good software. And that's being taken care of both inside and outside of Sony. It's taken a long time, but a couple more games that will prove to be decently good sellers are on their way. Additionally, with the PS2 on the decline it is quite possible that developers may shift resources to the PSP. Really, the two are in competition with eachother and the PSP just can't win that.
Now I won't say that the PSP is suddenly going to become a massive success, but it's making people money. If it can keep doing that for a couple more years, I'd call that a success.
You do not have the right to never be offended.
