Well the PSP was on the market before both of those platforms and the current sales indicate that it won't be to long before they pass the PSP's total sales.

Wasn't the psp out before the wii and ds? I can't remember if it was or not, this system could have sold alot more if they had put a real effort into getting games for it. I always figured they would import some more popular ps2 games onto it.

The PSP came out at the very end of 2004 in Japan, alongside the DS, and March 2005 in NA.

The term "failure" is pretty strong, but let's face it:  When the PSP was first announced along with the DS everyone (including me) thought, at the very least, that Nintendo would have some serious competition on their hands, and at first they did.  But all it took was a simple redesign into the DS Lite, along with some apps that really took advantage of the hardware (Brain Age, Nintendogs, etc.) for Nintendo to storm into the lead and never look back.

Honestly, I really wish that Sony would just give up on handhelds and just focus on the PS3.  Look at the tremendous success they enjoyed with PS1 and PS2, at which time they had no handheld system...

psp 2 should dismiss the UMD and use encrypted memory sticks and 64gb internal memory and must have touch screen and GPS, two analog and some inside accelerometers like iphone has... and should also be a sony ericson phone...

edit:
oh... and light, smaller than 3000, and cheap...

I think they could anounce a PSP2 this E3, with a release date in november for Europe and America and Spring 2011 for Japan (to take advantage that they still sell in Japan).

The tech should be like 2 PSP duck taped together, I mean not a lot of technical advantage to keep the cost of producing games in check and get easy ports from the Wii. It could be DD only and with a price of 200 at max.

I'm glad Sony put effort into bringing their style of gaming to the handheld market, because Nintendo was boring me.

I only played the pokemon games. Now I'm enjoying a multitude of games on handhelds.

What I am saying is Sony needs to refresh their efforts.