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hardyhar said:
No, I think there's plenty of room for one, but it needs to be very different from the home experience to separate the two. As it is, the PSP is basically a very watered-down console.

I agree with that part. At the end of the day though, they've sold a lot of them and presumably it's profitable so why abandon it? The bigger issue is game sales, outside of Japan anyway. For a system that's sold over 56 million units, the game sales are dire.

Game sales are an issue in Japan too... the PSP only has 3 million sellers in Japan, and they are all Monster Hunter games. Even the Wii is killing it in software in Japan.