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My prediction is the PSP 2 (not redesign but official successor) will come out 2010, and the next DS (Nintendo is almost certain to keep both touch screen and duel screen for their next handheld) will come 2011. Sony will definetly want a head start in the next handheld race. In my opinion that's the only chance they have to make significant inroads in the handheld market. Nintnedo waiting until 2011 would make it seven years between handhelds, but the way things are going with the DS why not just keep having it sell insane. I think it's probably correct that neither system has peaked yet. 2008 I think will end up being the peak year for both; the DS will get a price cut and new colors which is sure to give it a solid boost, and the PSP will get a redesign and some pretty amazing looking games. 30 million for the DS and 15 million for the PSP in 2008 would really make it the year of the handheld.