Seece said:
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No. It's not stupid at all. You just think it is.
The PSP is profiting. And it's still selling really well after 5 1/2 years on the market. It's just having TERRIBLE sales in a single region, and as you say... Bad software sales in 2 regions.
And it must be selling enough SW to make it worthwhile, as they keep announcing more and more games for it every year... And 3rd parties are still supporting it. That, and we have no idea how much money is being made through games sold on PSN.
All it needs is a pricecut (when was the last time it actually had one?) and/or another redesign. It will be back to selling well again. Sony are just dumb, and lost focus on the thing all together for a year or two.