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A console that has sold >30 million worldwide cannot be classed as a failure! The software side, yes, but i think Sony will have learnt that lesson for the next time! They severely underestimated the amount of people that are willing to hack games instead of paying for them!

The PSP2 (or whatever) should not use UMD but rather a way that allows for games to be cheaper and more secure! I mean £29.99 for a handheld game is insane, the DS is no better with games going for £34.99 :S