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kowenicki said:

Well we have no idea what the spec and plans for the PSP2 are...

But yes this could really have caused a "oh shit" meeting at Sony the morning it was announced. Then again they could be thinking ha... our 3d is nicer or.. ahhh but we have this. who knows? we shall see.

If this looks good at E3 they will steal a march on the PSP2 that could result in the PSP2 really struggling from the off.

Yea we know nothing about PSP2 but I think after this we at least know a PSP2 exists or more than likely has to exist.  I doubt Sony will just layback on that matter.  So yes Sony could have had an "oh shit" meeting but I think they probably were looking into similar things.  But the "oh shit" part is probably coming on timing because I wouldn't have expected this and to have a 3D capable system so soon.  But the main "oh shit" part is probably Sony not getting that advantage to be the first when it comes to the next generation as Nintendo has definitely stolen that.  That was something Sony was probably going to heavily rely on and Nintendo beat them to the punch. 

But as Squilliam stated, I do think a lot of this is more directed at the Iphone which Nintendo may consider more of a competitor.  With the adaptive abilities of the Iphone Nintendo knows they need to keep pushing the envelope and therefore we are at this.  They are still a huge market leader, but if they lay back someone will take it.