At this time, I think that a portable system like PSP has much better selling potential and makes more sense in terms of profits than releasing the highly expensive PS4 or even PS3.
This might sound strange but the fact that PSP's security has been compromised might make the system a huge hit in China. Furthermore, I believe that the PSP is being sold for a profit right now, which means that Sony does not have to rely on software sales or subscription to expensive services to make profit but it simply has to advertise and sell the hardware. The PSP also has a video out cable so that people can plug it into the TV if that is what they want, it is relatively powerful for emulation and multimedia purposes, and it is portable so immediate access to power or a TV is not necessary to play, and did I mention it is inexpensive!
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