PSP unfortunately was an underutilized system.
Great system, but hampered by lack of originality. The market soon learned you could pick up any of its games on the PS2, except with better graphical and control quality, and sometimes (esp in the earlier days) more features.
Shame. At least MGS Peace Walker is my personal most anticipated handheld release...nothing coming out for the DS really screams killer app to me (DQ9 is debatable; im not a fan of RPGs).
But hell, even if you look @ my software selection, its clearly in the favor of the DS.
Sony had a really great first go though....30% of the handheld market it more than any other handheld competitor has ever got out of Nintendo....even though PSP launched when the PS brand was its strongest.
Its a great handheld still....one can do so much with it.
I think the iPhone is also eating into its sales, but not to a large margin yet. There is no way to truly guauge how it is impacting the PSP, but when the PSP is up against the iphone and the DS, its a real uphill battle.
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