They made the mistake of creating a home console that's portable, and not a handheld. You can only do that if graphics and controls are at the same level.
But still, getting 1/3rd of the market on a first try, that's quite an accomplishment.
Yes, they'v got piracy issues, but the DS got even bigger Piracy issues.
All they have to do (and can do) now, is provide users with a steady stream of good games. They don't have to be amazing titles like God of War, but good enough to keep users happy. Because a happy user will buy the PSP2
Th PSP2 should run all its games of HDD, have a great online store to buy games, and have better controls (2 great analogue sticks, like the one the NeoGeo handheld had), and 4 shoulder buttons.
If they can steal away 33% market share now, they might be able to get 40 or 50% next time.
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