Nothing killed the PSP. It's still alive and doing well.
The biggest problem with the PSP model is that most games are just PS2 or PS3 games that we are paying 30-40 dollars for again, or 15 -20 again for the downloadable titles.
Example: Soul Calibur 4 59.99 vs Soul Calibur Broken Destiny 39.99 Difference $20
Tekken 6 59.99 vs Tekken 6 PSP 39.99 Difference $20
GTA 4 59.99 vs GTA LCS 39.99 Difference $20
God of War 2 49.99 vs God CoO 39.99 Difference $10
Little Big Planet 59.99 vs Little Big Planet39.99 Difference $20
Pixel Junk Monsters 14.99 vs 14.99
If users already have said game it is asking a lot to shell out the cost of almost(2/3 on average) a new iteration for what amounts to the same game probably minus features b/c of controls, disk space, not as good graphics or the fact that some devs view the handheld space as being for low quality ports.
If Sony could do cheaper new AAA software(19.99-29.99) we might see more software sales. We all know hardware sells fine and since software sells the hardware they could be doing even better.
Why doesn't Sony have a music store like Itunes?
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