I think full phone integration and a Wii-like upgrade cycle (same chipset upspecced, internal flash standard, new interfaces like touchscreen and acceleromers/gyro added, 2nd analog nub) would be the best route for PSP, and probably preferable to a hi-spec PSP2 right now. They should probably also drop UMD, but if they do this they really have to massively improve PSN for consumers (lower pricepoints, all UMD content available, more PS1 games in the west). That way Sony can profit on the platform from day one, they can reissue tons of PSP content (some upgraded for the new interfaces, like tilt for LocoRoco or touch for Patapon), they can temp back 3rd parties by improving piracy measures (killing PSP1/UMD will help this also) and they can try to feed on 3DS's heavy 3rd party support by encouraging ports. They could even issue a new "Phoneless" SKU (PSP touch) for people who purely want to use it as a game system. No 3D though, a similar handheld 3D solution would be seen as (1) redundantly 3DS-too and (2) at odds with their TV/PS3 3D message (glasses). They also can't break the bank on pricing, it needs to be $199 or less at launch (probably $99 with contract would be good, $149 for standalone).







