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"How do you figure that? There's only 2 handhelds and the DS is far below specwise compared to the PSP. So by great graphics you mean worse than the competitor and worst of the current handheld gen?

Unlike what some people want to believe, the PSP does not have console level graphics. From the games I have played, the PSP's graphics good, but not amazing. Take a look at Megaman X, for example. The game barley looks better than New! Super Mario Bros. Sure, it's better looking. However, it's not by a wide margin. New! Super Mario Bros. still looks great.