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PSP hardware is selling fine. The software is the problem.

There are various reasons for this:
1/ Sony is positioning the PSP are "more" than a game player. It makes for a great portable media player. This also means its perceived as "less" of a games machine than the DS is (similar issue to the PS3 vrs 360 IMO).

2/ Piracy is rampant. There are again a couple of reasons for this.

3/ Its a portable console. As a result, it gets the SAME games that the PS2 gets. Yet the games are always inferior on the PSP than when on the PS2 - plus more expensive (in general?). Its hard to make an awesome PSP title - that wouldn't be better on the PS2.

I still argue the core difference between the PSP & DS is the media - disc vrs cartridge based. Part of the reason piracy started, is that when games are loaded/run via memory stick (rather than UMD) they run better. This provides a "piracy entry point" for gamers who have no interest in piracy. And once you start down that track, copying games follows.

Its also hard to compete against Nintendo. Like any two-way console battle, whoever gets their nose in front first gets a real boost - more support, better games, blockbusters, etc. The DS jumped ahead once the DSLite was released - and the PSP has been on the back foot ever since.

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The PSP has been a successful console, and will end up making Sony a lot of money. But it will always be overshadowed by the DS.

I restate - Sony *must* release the PSP2 before the DS2 is released - and IMO really, really must drop disc based media - and fix the other issues. Otherwise they will get crunched all over again.

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And re: DS is for kids - that is a complete fallacy. Not only may the DS have a "higher" average age for general purchasers, it has a lot more "applications" that appeal to adults - and has a much, much higher market share than the PSP for adults.



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