They may have a chance, but it's going to be tough having to fight uphill after a year or more of the 3DS in the market when the PSP 2 is finally released. The 3DS is going to get a lot of positive press for the 3-D without the glasses thing, and add to that the strong first and third party support games schedule for launch and throughout the year, and the 3DS is likely the number 1 story in video games for 2011. I don't see how PSP2 matches that just on more blunt power alone, if that's their goal. Price is something that should concern both systems, but if the 3DS is $250 I don't see much of a problem.
What's going to sell it is the same as what sold the Wii, people's first instant impression upon experiencing the new kind of gameplay. If that's positive everything else takes care of itself. And with games like MGS and Resident Evil it can be Nintendo's most hardcore handheld ever. I think it will be really big, though no matter how big Sony should definetly stay in the handheld market. As we've seen with the PS3 that while third has become more successful than almost any second place system in previous generations, you don't have to be first to have a hit.
