Did Nintendo just Dreamcast the PSP2?

[cAPSLOCK]

I imagine a PSP2 isn't as big of a priority as we might think it is.

At this point Sony is handing MS's ass to them on a silver platter. Between the slim launch and the PS3 starting to come into its own power-wise (that 10 year plan doesn't sound so LOLish at this point) I imagine priority #1 is pushing MS further down as they work their way up.  #2 would probably be working out all the possible kinks in Move for the PS4.   

Where did this idea that Apple is fighting NIntendo come from? Companies can have more than 1 rival. It's not MS vs Sony and in some other ring Apple vs Nintendo.  It's more like a giant brawl and lots of companies are getting in sucker punches on each other. Not everything is as simple as Black vs White and waaaaay over here is Red vs Blue. 

Don't forget MS is getting their shit packed by Google at the moment, too, who is also fighting Apple who is fighting MS. Poor MS is getting fucked in all holes at this point (ears and nose, too) because they're a big stupid lumbering mass so it's been a feeding frenzy on all fronts, even their desktop OSes are losing some share to Linux and more to Apple (not to mention Steam going to Mac and probably Linux, making it harder since games are a huge draw for the desktop crowd).

If Sony is smart they're not making a PSP2.  If they have any brains at all they're leaving the pure gaming pocket platform to Nintendo and going phone/apps/games feature-rich device.   They're not going to beat Nintendo on the gaming front, but they can (and easily) beat them on the feature front and create a compelling case as a compromise between an iPhone and 3DS.

Basically if they make a pure gaming PSP2 they're just making a giant pile of money and burning it.