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I think the main problem is that PSP is too much like the PS3 that they tend to eat at eachother's potential sales. It's a similar situation in Japan. PSP has always done well there, and now that the PS3 is finally starting to pick up there, PSP sales are going down. Same situation in America. PS3 is finally starting to take off there so it is taking its toll on PSP sales. Add that to the fact that handhelds aren't quite as popular here as they are in Japan or Europe.

PSP is a decent system, but there are very few standout games worth buying one for. This shows in the amount of piracy on the platform. I might sell mine soon to put towards a PS3.