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Otakumegane said:

What started the PSP decline?

Lack of support that appealed to a Western market. Poor choice in hardware revisions. Rise of the DS/ Mobile Gaming.

If you look at the PSP's early releases, it was a great system to own. It had games like GTA, Tekken, Medal of Honor and FInal Fantasy... And Sony actually supported it with some pretty decent games like Daxter, Ratchet and God of War. The games at the time were brilliant to see on a handheld, expecially GTA.

Releases dried up. Sony stopped supporting it. It found new life in Japan.