jman8 on 27 March 2007
Mainly because it hasn't lived up to Sony's expectations. Sales have been down - the 2006 holiday season saw Sales down 72% from last years! - and the company has cut their targetrs for the system at least once ( I think twice but I'm not sure). Now when a system declines like that, it's just not good. Now that doesn't mean the system isn't still selling or that it's profitable. But it is doing quite poorly compared to Sony's expectations for the product.
SHIPMENTS were down 72% but SALES were about the same as last year. As for what Sony's expectations were, i have no idea about that.
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.
Essay Pro