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The Fury said:

For handheld market, Sony should move to downloads for games and movies. It's a sensible move. It then might fill a nice gap between gaming and downloading. But not yet, wait until PSP2 in 2010 or something.

but then they'd be competing with the Nintendo handheld and iPod.
Maybe the in the middle option is the best one.

 

Aren't they already? The biggest draws to the PSP are the multimedia capabilities (like an Ipod) and the gaming capabilities (like a DS). What Sony needs to do is get better at both of those things. Right now they're doing that by building up the online infrastructure to support a downloadable gaming, video, and music device. With the PS3, PC, and now direct-to-PSP store, I think they have the infrastructure in place. They just have to expand the offerings on the stores. The next step would be to just go ahead and release a new device to take full advantage of this infrastructure.

It kinda reminds me of the development of Xbox Live. It came along early in the Xbox's life and slowly it was built up through the previous generation. Then the 360 came along and completely capitalized on those years of Live development.



My Top 5:

Shadow of the Colossus, Metal Gear Solid 3, Shenmue, Skies of Arcadia, Chrono Trigger

My 2 nex-gen systems: PS3 and Wii

Prediction Aug '08: We see the PSP2 released fall '09. Graphically, it's basically the same as the current system. UMD drive ditched and replaced by 4-8gb on board flash memory. Other upgrades: 2nd analog nub, touchscreen, blutooth, motion sensor. Design: Flip-style or slider. Size: Think Iphone. Cost: $199. Will be profitable on day 1.