mike_intellivision said:
It is true that software drives sales -- but only for a short time. That is what is called a spike. Long-term sales are driven by other factors (as well as quality of the software). New models, for example, drives handheld sales. If I am not misiterpting this chart, the time in the middle when the PSP outsold the DS was the model upgrade for the latter. And software announcements and releases are cylical. If you want to see the power of software, check the DS sales in Japan in a couple of months when DQ IX is released. Mike from Morgantown Lifetime sales in Japan: Wii 7M, PS3 3M, Xbox 360 1M.
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Software sales don't drive console sales for the short term.
Look at the PS1 and PS2. Their sales were totally driven by their software. It's quality and amount.
The PSP had the best selling game in Japan in 2008 with Monster Hunter which sold 2.4 million copies and there the turnaround started when the slim released as you indicated but it was also due to Crisis Core: Final Fantasy VII releasing at almost the same time. Crisis Core has sold 2 million copies worldwide and introduced to the Japanese the idea that the PSP was a game system as viable as any other.
Of course, Monster Hunter and Crisis Core and their sales have led to the appearance of many more big games coming to the PSP in Japan over the last year. Dragon Quest IX will be huge, but so will Final Fantasy XIII Agito and the two Kingdom Hearts games coming to the PSP. And unlike many Square games that appear on DS that are remakes, the ones coming to the PSP are brand new games developed exclusively for PSP
Heavens to Murgatoids.