With all the hype over Nintendo's new handheld and the slowing sales of the psp,should sony just discontinue it. I respect the fact that Sony has had the psp in the market for this long,but let's face it the psp is pretty much dead in the water. Sony should also seriously think about cutting the price of the psp.

Some sources indicate that they're up to some Android-equiped smartphone/tablet PC. So maybe they're going to rebrand PSP to something more appealing, like an actual "Walkman of the 21st century" which PSP was supposed to be? Ah, they're late, iPhone already got that spot. Still they may try and finally make "Walkman of the 22nd century". Sarcasm aside, PSP2 in a sense of pure handheld device may be useless for consumers, there's 3DS for that purpose.

Short answer, no.

I'm too lazy to provide a long answer.

I'd sooner see them kill the ps2 than the psp.

No way. They just showed Ys: The Oath in Felghana. PSP is getting ready to be reborn!

No.

No, they need the money they make off it. However, as for a PSP2, I dunno. Let's wait and see what they'll do.

should microsoft discontinue the xbox 360? they are selling about the same right now

Why would they discontinue it when it makes still profit ?

maybe on the hardware,but I don't think so on the software.