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RolStoppable said:

The 3DS is struggling, because better graphics don't automatically translate to better games and it suffers from a too high price tag at the moment. Either the price comes down to a level that matches the value of the current software library or the library gets build up to the point that the price tag is justified. The most likely scenario is that parity will be reached once the system gets a $/€199 price tag.

The NGP will share the same exact problems once it launches, so expect a PSP vs. NGP battle similar to the one we saw with the PS2 vs. PS3. Ports of home console games aren't going to make the 3DS and NGP sell well, so banking on such ports isn't going to bring the desired results. For Sony to have a chance at 50 % marketshare they have to hope for a combination of third parties treating the 3DS like the Wii and Nintendo selfdestructing by, for example, not releasing a Super Mario Bros. game. There isn't one coming out this fiscal year, so Sony's chances for the latter to happen aren't actually that bad, but it's just a part of the equation.

While it's certainly true that Nintendo has positioned itself quite bad with the 3DS, so far there's nothing that suggests that Sony can take advantage of that. And by the time the NGP has released worldwide, the 3DS can already look back at a full year of game releases, making it look much more attractive than the NGP (which won't cost less than the 3DS) with a handful of worthwile launch titles.

I don't see the NGP facing the same problems as the 3DS.  For one, I doubt anyone will ever get confused that the NGP is just another revision of the PSP.  Second, Sony fans are used to paying more for Sony's systems for extra features and/or power.  Nintendo fans, on the other hand, have always been used to paying quite a bit less for less power under the hood and usually, but not always, less features. Third, Nintendo has let the 3DS be on the market for roughly 2 months without any real must-have titiles for it.  And as you stated, there isn't even a game from one of their biggest franchises launching for it within a year or so.

These are things Sony can take advantage of.  Sony has made sure the NGP looks different enough from the PSP that they couldn't possibly get confused.  If Sony can price the basic model of the NGP for $249-$299 (<- more likely), gamers will see it as having more value for their dollar, with it having two analog sticks and graphics comparable to the PS3, as well as many extra features.  With the ease of developing for the NGP, and the announcements at Sony's conference, its obvious that 3rd party developers are excited about making games for it.  Before we knew about the NGP, many Nintendo fans were claiming Nintendo had already stolen all the 3rd parties from Sony and they were more interested in the 3DS.  This doesn't look to be the case at all.  And we already know Sony's strength in first party studios.  I can see a Japan and NA release of the NGP this holiday season, and I'm sure Sony will make sure it has at least 2 must-have games for each region.