How does Nintendo dominate the handheld market?

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Yakuzaice said:

 

The PSP launched at $100 more than the DS at launch. I'd say the PSP was expensive compared to the DS.

 

 The higher launch price and the higher game price are both very noticable.  A few of DS's best sellers (Brain Training, Brain Training 2, Flash Focus) sell for around $18 and many go for $20.  Also, several older DS games retail for $15.99 at Costco.  I don't know about PSP games because I never see them at Costco.