HappySqurriel said:
The PSP is facing "Trailing console syndrome" and is struggling to sell because its not getting the software it needs, and it is rapidly losing the attention of the market. Both the PS2 and PSP's best days are behind them, and they will only see declining sales from this point forward. On the whole Sony is struggling, and in the gaming division they're in trouble because they need profit to support the R&D and start up costs of their next handheld platform, and after they launch the next PSP they will immediately need more cash to support the R&D and start up costs for their next home console platform. You have to remember that the massive costs necessary to launch a platform start 2 years before the platform make it to market, and even the "10 year plan" myth doesn't mean that Sony won't launch a platform 5 or 6 years after their previous platform was released.
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They do make profit dont they? PS2 makes profit, PSP makes profit and they make alot of profit on Software.