Right now in Japan the PSP has at best one more week ahead of the DS Lite before it slips behind and likely never reaches DS sales again. In Europe the PSP got a spike, but never came close to DS sales. In the US we'll have to wait and see, but at best the PSP may spend one week ahead of the DS before it falls behind forever, and even that's in doubt because Zelda just came out. I really don't see the PSP coming close to the DS when holiday sales roll around.
The reason the DS Lite gave the system so much momentum, which has lasted ever since it was released, is because of how dramatic an improvement it was on the old DS. While DS and DS Lite are like night and day, PSP and PSP 2000 are more like night and dawn. The system should stabalize somewhere above where old PSP sales did, and I think it's the best story for Sony at this point in time (unless they drop the PS2 down to $100 than that could come back as their best selling system). I just don't believe it changes the fact that Nintendo dominates the handheld market.
