Hmm, well it's been moderately successful, at least in sales. I won't go into details about profits.. :p Then again, everybody and your grandma was convinced PSP would wipe the floor with the DS when it came out 3 years ago, Nintendo's handheld succes would be over and done with. Now look at things. So in that respect, I think you can't really call the machine successful.
And besides, we all know software sales are where the money is, and frankly, PSP doesn't get a lot of those. Face it, 95% of the people who buy the thing do so to play pirated, downloadable content, be it movie, music, or games. Sad fact: a lot of those games are ROMS of SNES games.. :s
My guess is PSP will die a quiet and forgotten death. Not now, not this year, probably not next either, but soon enough. Just my two cents.
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