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A Bad Clown said:
When you can get a PSP-3000 for under 170$ now why would you spend 250$ on one that does less? If anything the price cuts for that in Japan would have more sales than the PSP Go.

I wouldn't say it "does less", as far as a new user is concerned.  My PSP-2000 can't store some 30 games internally (it could do about 15, if I had a 16 GB memstick for it, though), and doesn't become a home console, complete with wireless controller (via bluetooth) when I get home.  There are more games available for the other models... assuming you think UMDs are cool, and are willing to visit used retail outlets -- the number of new titles available digitally, however, far exceeds the number available physically.

If you think it "does less", you're coming from a relatively rare consumer perspective -- that of the relatively "hardcore" handheld gamer, who frequests used game shops and places like eBay.

Also, why did near 30K people, in a single day, purchase the more expensive Go model, over the PSP-3000?  Look at the reasons above -- particularly "less stuff to carry around" and "turns into a home console", and think "Japan", and if you known anything about living in Japan, you might understand.

Not for everyone, for certain.  But there ARE lots of people who are interested in the Go, over the other models.  I'd call that (expanding the audience) a success.