Sony doesn't care about the blue ocean. They never have. They leave that to Samsung, Panasonic, Nintendo, etc.
The PSP2 will probably not be a "blue ocean" device. That's not Sony's style. They aim for the high quality market, at a premium price, and they rarely deviate from that path.
Because Sony is so focused, and so unswerving in their endeavors, I think you have to look at what the competition is doing to really gauge how well Sony will do next gen.
If the PSP2 is the highest performing, most console-like of handhelds in the next gen... how will it fare vs the iTouch and the 3DS? Honestly I think the 3DS is a bad course change for Nintendo, if it truly is using the expensive fixed-focal-distance 3D tech Sharp invented. Nintendo and expensive aren't really a good match, given their young standard demographic.
Making the DS more expensive is a bad idea. I honestly think the 3DS announcement should have waited another year or so. In that regard, I think the PSP2 will probably perform better, relatively, vs the 3DS, than the PSP did vs the DS.
...but outperform it? Honestly I think the DS (actually the DSi), much like the PS2, will continue to be the handheld mainstay for many years to come... it fits the demographic just right, and will continue to do so, as its price drops relative to the new.
PSP owners, I think, are more likely to upgrade to a PSP2, than DS owners are likely to upgrade to a 3DS, just by nature.
