So as long as the PSP brand is a strong #2 in Japan, I don't think SONY should give up on it.

There are two main problems with the PSP brand in North America

1) Their main audience (older teen/young adult male gamers) mostly use cars for transportation as opposed to public transit. Therefore their are less opportunities for them to play lengthy handheld games outside the home. When they are at home, it's PS3 or Xbox 360 time. The PSP does appeal to western otakus though seeing as how the PSP has a great selection of Japanese software. But this is a small niche audience.

2) Many teenage and young adult male gamers who actually own a PSP pirate the games to bloody hell. Many wouldn't have even bought a PSP in the first place if they couldn't pirate the games.

PSP can try to get out of the rut they are in in North America by copycatting Apple (PMP with small bite-sized games) and Nintendo (casual games and kids games) but it's really not gonna make a difference.

How about.... good games?

I mean, that's the most important thing on a gaming console. But I guess people tend to forget that.

So no, I won't buy the psp2 even if it has all those features, that personally, i don't give 2 cents for all those thing. If I wanted an iphone, I would buy one. If I want a portable gaming console, i'll buy one. And games are the most important part of that. The psp lacks in that department