Chadius on 20 December 2007
Convergent, multifunction products like the PSP will have the problem of directiion and specialization. Sony's PSP will sell as a multimedia player first and a game console second. Sales should remain pretty stable throughout next year.
For the PSP2- If I were Sony, I would take a careful look at what people like to do with the PSP. I'd make it a much more accessible multimedia tool. Drop security altogether (it'll get hacked anyway) and basically make a cheap laptop with DVD playback, MP3 player, a decent resolution LCD display and hard drive. As a side note, it can play PSP games.
There is no such thing as a console war. This is the first step to game design.
