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DS is on the verge of outselling the PS2 in just a bit over 3 years on the market, it can't keep up such insane sales forever. It simply had to fall off in Japan eventually.

Strong PSP hardware sales are a bit more puzzling, as PSP software remains fairly low in Japan. I suppose either people are getting a lot of mileage out of the PSP as a media device (or illegally, as an emulator), or former PSP owners are replacing their systems with the new model (an argument that can also be used against the PS2 and DS, but both those systems have much stronger software sales).

Saying that the PSP is outselling the DS is sort of meaningless, because the DS has an enormous 14 million lead in Japan. That's certainly not going to change anytime soon. But it is impressive that hardware that has lost the console war so thoroughly continues to sell pretty well, as that certainly bucks the trend in the Japanese market.