Level 5 is an incredibly well-run company. They've created a host of very solid fan favorite titles over the years and have really leveraged their talent by hooking up with big time publishers who know how to treat their games. Their relationships with Sony and even Square Enix have been incredibly savvy moves. At this point, Level 5 and Dragon Quest have become somewhat synonymous, which puts Square in a tough position. In a way, Square's helping to fund one of their competitors by outsourcing that series to Level 5. They could do the game in house, but losing Level 5's talent and name is ultimately detrimental to the series. On top of that, they have power over Sony b/c the PS3 has no JRPGs for the system, so Level 5 can demand some pretty good perks to develop PS3 games. All the while, they keep making games that generate huge fan interest and loyalty. That's a formula for success.
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.
