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It seems to me people are misinterpreting the purpose of the PSP Go. Sony isn't expecting people to upgrade. They're expecting to attract the iTouch's market and make a ton of money in the process. This device will sell like hotcakes in Japan, where all PSP games have been distributed digitally for awhile now. Furthermore, the PSP Go is probably the biggest single thing that will give Sony the financial leverage to significantly drop the PS3's price.