Wyrdness said:
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I think the PSP sold because it was the "cool handheld". It was more powerful than the DS and had more mature games. The PS3 and the X360 had to deal with the shaky transition to HD and the Wii was tageted toward casuals. When pushed hard enough, the games weren't all that far off from the PS2/GC/Xbox.
You know what I think happened to the PSP base? They went upmarket. The Wii kept the market afloat while the other consoles adapted to HD, which then followed suit by delivering games similar in style but far superior to the PSP. Consoles were more powerful, had better features, and bigger, brighter displays. and now they were affordable. Perfect for the former PSP base who had grown older anyway.
The PC market surged as well. The games were cheaper AND more visually impressive than even consoles, which was a deal some more tech-oriented individuals couldn't pass up. The added bonus of being able to customize your experience with mods, settings, etc. and even using a TV monitor like a console is something that's very culturally appealing to westerners, and in part, inspired hacks of handheld systems and games (i.e. Pokemon).
Non-browser-based Indie games came along and gave people small experiences at high quality. Mobile devices came along and eroded the handheld market in general by giving consumers the option of gaming on a multipurpose device and giving developers the option of developing games with less money, less potential risk involved, and much greater chance of profitability.
In Japan, they really don't care about graphics unless they enhance the quality of the game along traditional lines, improving what's already there and adding additional things without changing the fundamental experience. Efficiency is valued over pure quality. So when people in Japa saw a two-screened, 3D capable handheld with Nintendo games, it sounded like a pretty good deal. Developers were not that eager to brace the HD development cost spike with the Vita if they could avoid it.









