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Gilgamesh said:

What an odd question? Obviously there going to continue with the handheld market, just because there not in first place doesn't mean it's a failure, the PS3 shipped 60 million units, that's the biggest competition Nintendo ever had by far. PSP2 has potential of being the number one handheld if they play there cards right.

Remember, handheld is the future.

List the cards that Sony would play that has it being the number one handheld and dethroning Nintendo, and also going up against Apple in that marketspace.  In short, how does Sony do it?  I would like to see what it does, not some sort of results and sales forecasts without any causes listed.  If you can't do this, it looks like you are engaging in wishful thinking here.  Nintendo is, for example, going with 3D this time.  That changes the equation.  And if the rumored Tegra 2 is used, the 3DS has capabilities to be on par with the 360 and PS3 on the graphics front:

http://www.macrumors.com/2010/01/08/ces-2010-nvidia-tegra-2-to-power-tablets-in-2010/

This would mean the Nintendo handheld has the possibility of getting copies of games on the PS3 and 360. 

Again, explain the cards you see Sony playing that will lock it in for being number one.  Not just surviving and staying in, but become the top dog.  I will throw you a possible card here, if you choose to use it: Running Droid software.