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Soundwave said:

The problem is not the price.

$250 for a 5' inch OLED display and a chipset that's basically double what's in the current iPhone (8 cores right?) is a pretty sweet deal actually.

It's the same price the PSP launched at and successfully launched at. 

The problem is both price and games. No 250$ is not a sweet deal, since most people buy consoles to play games, not to have a fancy hardware to display. The 3DS actually has better games and a better price, so there's no competiton.

The PSP succesfully launched because the DS wasn't particulary competitive in its first year. Also beacuse PSP was a portable multimedia device. The PSV is useless as a multimedia device, since any smatphone or mp4 player can do the same things while being smaller and with a longer battery autonomy.