@Goddog and Khuutra
The DS is amazing, and it's library is indeed superior to the PSP. But, imo, what really killed the PSP was piracy. Just look at the sales of the PSP compared to the amount of software that's being bought for it. The difference is astronomical! Before the PSP pirating days were in full gear, the PSP, while having a smaller user base than the DS, moved quite a bite of software. According to VGC it has 5mil sellers I believe. Not bad for a first attempt at a handheld.
I say piracy was the main cause because software is what sells a system. And with all the piracy going on the PSP, devs aren't going to put risky IPs or new IP on the PSP. I find it amazing high profile games like KHBBS and FF Agito are still set to release on the PSP. Sony must be covering their costs to some extent.
Also, the DS does have the nostalgia and gameboy legacy behind it, so that is automatically an advantage for the handheld. PSP had no history whatsoever backing it up. Now, second gen PSP's, or PSP2 will have a slightly decent reputation behind, but it will still pale in comparison to Ninty's next-gen handheld unless they pull off something drastic.
I believe, that if piracy didn't hit the PSP as hard as it did, the handheld market would have been more competitive and balanced, but still in Nintendo's favor. Maybe 40% vs 60% market share.
