if this is really true than PSP2 will be the biggest flop in gaming history...belive it...

A disaster in the making since we can all say goodbye to a $149 or even $199 launch price. I'm guessing it'll start off at $249 or even $299 (or worse). Sony should just keep the PSP on life support because this is just going to be an even worse financial hit on them.

When are people going to get that this is the future. I'm actually suprised that Nintendo hasn't announced the same thing for the 3DS yet(maybe they will). If they do nobody has a choice and nothing to whine about anymore, and the transition would be smooth.

Both handhelds have serious piracy problems, witch would be fixed with this system. Besides that, every publisher is hammering on the second hand market anyway, so that's going to dissapear in the future aswell(even if PSP2 fails). Besides the downloadable games might actually be $10 cheaper.

All Sony needs to do is cut a deal with Ericsson so they can put a phone option in there.

And this will do better than the PSP go did, since this is a generation of hardware. The PSP Go was technically the same, only without a UMD drive an with a higher price tag.

This. The utter failure of the SP Go should be a sign that consumers are not yet dumb enough to accept a download-only game system.

Pretty sure most would agree but the majority of consumers aren't ready for it.

DD is not really a solution for piracy. As far as I know DLC is pirated on all of the hacked consoles (except maybe DSi games, haven't heard about those).
Design of the device will have to take care of not being hacked, not being hacked too early or having significant drawbacks if hacked.

And price point will need to be way better than $10 off, if that's $10 off the now regular $40. People have shown plenty of support for DD, all around PC, retail games DLC, complete smaller/indie games, iPhone, but apart from the PC (and yeah, a lot of people just wait for deals from Steam), the price range is considerably lower.

A big name game, one with a loyal fanbase or at least with stellar reviews might do well for $30 DD. The rest needs to go lower because nobody likes taking stupid risks in today's oversaturated market. Demos also need to be made compulsory.

I woulda thought going mini-blu-ray is the way to go with PSP2.

If they try to be a gaming device that does telephony and no dics based games then they are going to try to do too much and not do anything right.

Japanese sales for last week according to Media Create:

REALLY?!

The headline is a lie and you all bought it, read the damn article. It's only a rumor/possibility.

If they priced it 20 dollars per game i would definitely buy one.