Nintendo's greatest threat atm is Apple. The iPhone is going to be multi-carrier next year. First it will be on Verizon, soon probably T-Mobile. At that point I see almost zero reason to carry both a phone and a PSP/DS. iPhone already tops kids buy list for christmas this year.

People predicted that Apple was going to be the next big player in mobile gaming and its already coming to fruition. I predict we will see in 1 years time, 1st place iPhone, 2nd DS/3DS, 3rd PSP/PSP2.

so instead of discoutinuing psp1 they will put it inside a smart phone and then release psp2?

so we get PSP2 just for games and PSP phone with all the psp 1 games on it(cause i assume it is as powerful as PSP1)??

I would surely get that. Whats fun with phone is that you can simply renew your contract and get it at a ridiculous price.

I think it´s kind of weird for sony to have 2 game consoles out there even if one is a phone. How will they manage with software and third parties? I think it would kind of compete with itself. I guess we´ll have to wait and see

There have been rumblings that SONY wants to push PSN to as many devices as possible, set top boxes, TVs, blue ray players, etc. Most games on PSN itself do not require PS3 capable hardware. PSN software is really just the original game with an emulater wrapping. If each device hooked up to PSN knew what wrapping it needed then _any_ PSN game could potentially work on _any_ device that met required minimum specs.

Including I assume this playstation branded phone.

PSP phone might just be given PSP and PS1 games, and the PSP2 will have new games.  Not a bad strategy I think.

Sony really might build a $600 portable, since most high end smart phones are $600 and this seems to have similar specs to $600 phones.

Well, this probably isn't psp 2 from the info we have available. And smart phones are pretty cheap with data plans. Thats how they get you.

Yeah, that's the one thing keeping me from getting the latest phones. Paying $70 a month is just not worth it to me.

That is damn ugly and bulkly. Already got a phone, dont need it.