No they didn't: the Dreamcast actually had some worthwhile games for it... What the 3DS did is more like an Atari Jaguaring or a 3DOing. Kidding, but yeah: the PSP2 is now a glorified paperweight.

      If expensive for a Nintendo system is $150 to 200, then what do you call the current pricing of the DS line?

DS Light still costing $129 four years after its release and almost two years to the release date of DSi, DSi still carrying its $169.99 price tage, and DSi XL costing $189.99?

  The 3DS will most likely cost much more than DSi XL which puts it at the $250.00 price point most probably and $300 if bundled with a game, so more than likely, at launch it will be the most expensive Nintendo console ever at the time of its release. 

I think that's being a bit drastic, but really, I don't see what the need to own a PSP would be with the 3DS. Between having 3D movies, and many games you would think would be on PSP rather than a Nintendo handheld (Resident Evil, Assassin's Creed, Saint's Row, Final Fantasy, Kingdom Hearts, MGS, etc), Nintendo is sort of beating Sony at its own game.

That would be a very un-Sony approach to the next gen, but it also might be the best strategy for Sony. 

Over-praise much? its amazing true, but to call a 60M unites WW "dreamcasted" is a fanboyish thing to say because if 60M is a failure what do you deem a winner? even more so since PSP is sonys first and only try into the handheld market.

Well whatever, when it comes right down to it, PSP has Tekken 6, and SCIV ports (two major HD Console fighting titles) and the DS or even wii for that matter didn't.

A PSP2 would be a welcome thing, but we'll just have to wait and see, nothing is written in stone except the 10 commandments.

Uh... hmm... *runs out of thread*

Its a clever move for them to not unveil PSP2 at this stage, cause anything against 3DS the behemoth would be epic fail.

Where did I say the PSP1 got dreamcasted?

Anyways, I might be jumping to conclusions here, but I think the 3DS is the beginning of the end for both Sony and Microsoft in the gaming market, don't wanna write why I think that right now because I'm sleepy, might do it tomorrow.

I think is a MH3DS is announced, the PSP2 will have an ever more uphill struggle on it hands

With all the games being developed for 3DS it'll be succesfull in every territory (especially Japan, with RPGs from SE, Residen Evil, Metal Gear and Nintendo games). Yes, not unveling PSP2 there was probably a good thing for Sony, but launching it after 3DS will probably cause its fail. The only thing I see as a positive element for Sony is the cost of 3DS games...we don't know how much they cost, but the system is very powerful and developers must make 2 different immages to create 3D; plus 3D moovies will just have 3d or 2d, but games will have adjustable 3D, so maybe it's more work. This suggests way bigger costs than DS.