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Agente42 said:

 

Piracy, the multimedia factor, the optical media (the best functioning of piracy) were the bottlenecks of the PSP to sell more games. Many used the PSP as an audio and video player, Ipod touch came out only after and iphone in 2007.

I wish there was a way to quantify how much piracy hurt the PSP because it's often used as a point for the PSP's lack of software sales.  Its tie-in ratio was almost a full two games less than the DS despite being paraded around as the handheld for core gamers at the time.