It really depends on what they want to achieve ...
From what we understand the PSP was supposed to be a cross between the Walkman (iPod) and the Gameboy in order for Sony to gain a foothold (dominance) in two markets that they ignored for far too long; they released the system 18 months before the Gameboy Advance was supposed to get a replacement in an effort to catch Nintendo off guard and establish the next format before Nintendo could respond. It can be argued that the PSP was successful, but I think everyone will admit that Sony fell short of what they were attempting.
Now the iPod is in a position where it can't be stopped, and it has a better chance of gaining a foothold in the gaming industry than the PSP2 has at becomming a media device; the Nintendo DS was heavily underestimated (which won't happen for its follow-up) and Sony will have to think twice before attempting to beat Nintendo at their own game.
