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infamous23 said:

So they've got some hardcore games.  But what happens if those hardcore games are said to be appearing on PSP2 (with stronger tech than PS3) and mini-360 next year with improved graphics?

And the PSP2 launches with brand new exclusive God of War, GTA, GT5, and Killzone games at launch while Mini-360 has new exclusive portable Halo, Fable, and Gears games available at their launch?

I really think the next handheld gen will be the most interesting one yet.

While you might see higher resolution screens and cleaner images in future generations, I doubt you will see games that are dramatically better than what the 3DS produces on any handheld device before 2015; and probably not even until then. From a hardware perspective, having such small devices with the need for reasonable battery life pretty much caps processing power at close to the 3DS; and even if you could produce a super powerful console, from a software perspective the handheld market can not support the $20 Million budgets of HD console games.

Beyond that, if the 3DS is averaging 20 to 30 Million units sold a year with massive software sales which third party publisher is going to divert resources away from it to devote them to the PSP2; especially considering the abysmal track record for game sales the PSP had.