Sony always emphasized the multi-purpose nature of PSP, if HW sales are still good and produce profit, why stop production, but it will have to live with resellers giving less space to goods related to PSP that fare poorly. UMD movies and PSP games not top selling will have to content themselves of the same amount of shelf space resellers give, for example, to plush cellphone covers 
Not an absolutely bad thing, Sony is surviving to these hits and we should hope it will learn from them, just like MS and Nintendo too learned a lot from past mistakes.
Not a bad thing twice, as Wii rise avoided a Sony near monopoly on not portable consoles, while Sony first attempt with PSP, with a decent 30+%HW and small, but not insignificant SW sales avoided a Nintendo total monopoly on portables.
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