Here's an interesting quotationI found on CNET's Crave blog:
According to a press release that went out today, Sony's also modified the pricing structure for the system's software, with "first-party PSP software priced using a new tiered model - $39.99 (premium titles), $29.99 (basic titles), and $19.99 (Greatest Hits titles)."
Looks Sony's getting more agressive with software pricing now too. This scheme puts game prices in line with the DS. Hopefully 3rd parties will follow Sony's lead.
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