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Leynos said:

In a way, it was as DS had the better format for handheld gaming and the disc format was the wrong format for that. A disc drive in a portable console is s shit idea. Not to mention memory sticks lol. DS was also cheaper and appealed to a wider net with the gimmick and IPs like Pokemon. Nintendogs. Brain Age. Mario Kart and such. PSP came across as poorer versions of PS2 games you probably already had in the early years.

Straight to the point.