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I think Sony does care about customer turnover, many companies do. So they will care that PSP Go is not improved enough that past Sony game users (mostly PSP owners) won't buy their new product. This is a strategy that companies rely on when skimming. For example the Apple iphone/ipods, there are fans of those devices that always buy their new products around when they come out.

I brought the DSi even when having the DSlite because I felt the improvements were worth it and I bet Nintendo added those improvements to entice gamers who play handhelds who most likely will then have DSlite or PSP. Also to attract new customers but that is always the plan when releasing any product.

These PSP Go "improvements" seem to only benefit Sony. Digital downloads help stop piracy and no UMD drive helps stop piracy/lowers the cost for them for this less than stellar media. The size is the only real benefit but that reduces the screen as well, size may outweigh that though.