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PSP is a great portable console but it has some major problem.

1) UMD space is to small. Only 1.8gb. If it was 5gb+ we might see lot of big PS2 game ported to PSP like FF, MGS, GTA:SA. PSP graphic is on par with PS2 but because of the sapce they had to sacrifice the graphic to fit the game. This explain why GOW:COO was very short. Dev can make multidisc but i dont think it is suitable for portable console.

2) No 2nd analog. FPS, racing suffer the most from this.

Anyway PSP is still doing great and able to grab 30% of portable market share. At least it managed to cmopete with Nintendo at the beginning. This year is great year fro PSP owner. KH:BBS, MGS:PW, Valkyria Chronicle 2, Persona 3, God Eater, Tales of VS. Even better than 2009.