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No, I think more people would have just bought other consoles

Nintendo would be bigger and probably wouldn't have made risks with things like the wii.. and sega would likely have held in there... and maybe still be awesome... Which is a big case for erasing PlayStation from history imo.

Nintendo are the ones competing with mobiles with their handhelds. But maybe they wouldn't have taken a risk with the ds if it wasn't for the psp.

Of cause you can't make any really informed guess at where things would go if you fundamentally change history like that. Maybe Mario galaxy would have sucked in that universe, the dreamcast 2 might have been the one with wii motes, and the Xbox might have been an Apple console.