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inoovations 

-two anologue sticks

-ditch UMD drive, replace with second harddrive stick which is uniquely for games 

-psp BC from store (maybe even re-release on new medium) 

games 

-more traditional rpgs, they need something similar to Pokemon but better 

-more platformers 

-cheap "iphone" like games avaliable on the stores (maybe even have packs of 10 available on disk)

-games for all of segas previous consoles on the store playable on both ps3 and psp2 (maybe even psp)

-put better devs on them