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What they need to do, is do exactly the same as the 3DS but psp style; meaning 3D without glasses and a huge omgwtfbbq lineup on launch date. With a price cheaper that 3DS( That, might be hard). THEN, they will put up a good challenge for the 3DS. Also a second analog would always be welcomed :D

 

PSP-4000 will barely do anything..except in japan, maybe.