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Sony's strategy of being hip and selling sports, licensed movie, and GTA games could only push the PSP so much. You have to remember that until Nintendogs was released, Nintendo has released very few of their big games/franchises. Nintendogs was pretty much the turning point along with the DS Lite and there was little Sony could do. If it counts for anything, they made a good effort. Sony did very little to emphasize software (something Microsoft did well with the 360) and was struck by widespread piracy.