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I think its accelerating. Perhaps more and more PSP users/buyers are using it as a music/movie player and fewer are using it to play games... 3rd party support is weakening compared to the DS, and an AAA first party title Jean D'arc sells very poorly... perhaps PSP is in trouble.
Who knows? May be sony will be forced to release PSP2 in 2009. If they do, it will probably have 2 analog nubs, xbox level graphics, and better integrated movie/music features. It will probably sell pretty wella nd make Sony some money, but I predict that Nintendo will be able to ride the DS until 2011, and then relases their own DS2 that also has gamecube/close to xbox level graphics, 2 screens, touch screen, tilt, and will probably be much cheaper. When that happens, DS2 will probably overtake PSP2's 2 year lead fairly quickly...
I wonder what Sony's plan is for its portable(s)?