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I'm tired of opinions being flung back and forth.  Let's find some facts...

Sony's 2007 Q2 financial statements agree with Gamer Girl Elite (more or less).

Worldwide software unit sales (decrease year-on-year):*

-> PS2: 38.0 million units (a decrease of 0.2 millinon units)
-> PSP: 12.6 million units (a decrease of 0.6 million units)
-> PS3: 10.3 million units


That decrease is relative to the previous quarter's sales.

Now, this decrease is not unexpected as is usual between their Q1 and Q2 sales however the decrease is much larger than it was between Q1-06 and Q2-06. This could be due to many different factors however it is still not a healthy indication for the PSP.

Sony's financials also show that the amount of hardware sold is beginning to taper off.

The PSP isn't dying, but it is certainly not at the level of health the DS is at.

PS: The recording differences between their financial statements are a pain. Older statements that list additional unit sales instead of sales relative to the last quarter are dumb (both would be better than just one).