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Back on topic, I think there's a huge factor that hasn't been mentioned, PS3. Sony losing billions on PS3 certainly affected PSP's price (no price drops) and marketing money. It seems to me Sony are content with making profit off PSP's hardware, and have no further ambitions. Which is a shame, but there you go.

If it wasn't for Capcom and Square Enix, PSP would be nowhere near current figures. In fact if you look at the future line-up, you can see that Square Enix take PSP far more seriously than Sony themselves.