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unless the PSP2 has.

A) Something on the technical side that the 3DS CAN'T do except for prettier graphics or

B) A lower price

I don't see Sony managing to even come CLOSE to challenging Nintendo. The 3DS will probably retail for around $250 in the US and become 2011's big Xmas gift as nearly every hardcore gamer and normal civilian had a DS. The 3DS also already has MASSIVE third party support with companies like SE, Atlus, CAPCOM, Konami, and Ubisoft committed to making games for it as well as Nintendo making quite a few new titles for it.

As for the tech side, there's nothing I can think of that the PSP2 could do except prettier graphics which didn't give the PSP ANY sort of sales boost.