Sony wouldn't want more losses me thinks, so it will be around $300. They will sell it at a small profit.

They can always have a price drop. 

If the graphics of the PSP2 will be nearly as good as PS3/Xbox360, who the hell is going to develop games for it? I'm afraid that especially Japanese developers won't be able to release nearly as much JRPGs for the 3DS and probably even less for the PSP2 considering the development costs.

wait, the PS cell phone is not PSP2!?

Nope, They have been saying they are both different devices for months.

for like millionth time :P gfx that 'look' on par with ps360 on the go won't take too much. For example if you have seen Ghost of Sparta, you can see why such a claim would make sense. That game looks on par with ps2 games easily, I expect no less from a 'next' gen handheld in the PSP line up

Still no phone support kinda kills it for me.

We knew this a LOOOONG time ago.

OT: Man...the price worries me for this thing. But sounds great so far. Let's hope it's got them gamez, unlike a certain home console.

But the iPhone has the benefit of subscription fee kickbacks to generate revenue. That's on top of their 30% cut from app sales on the AppStore.

The PSP2 wouldn't get such subsidies from its 3G carrier service unless there is some sort of data subscription contract involved, which would be a first for a simple game playing device.

But I don't think SCE will have to sell the PSP2 at a loss. The iPhone 4 only costs about $187 to manufacture. There is no single component in the PSP2 that should make them excessively expensive to manufacture. An OLED touchscreen display is in a $199 portable media player, so even that doesn't qualify.

And since SCE is presumably counting on media sales to generate revenue (unlike just about any media player not tethered to a first rate content/media portal like iOS devices), they shouldn't have to count on a huge mark up per unit for what is still basically just a game and media player.

Losing money is only a big deal if its a significant amount of money (ie, the $250 they were losing on launch ps3s).  They could easily sell the PSP2 at such a small loss that they'd make that money back with the sale of just 1-2 games.

Eh, I think we'll see a lot of games for it because of that.  All PS3/360/PC games will suddenly become PS3/360/PC/PSP2 games.

Of course, then we'll have even worse problems then we had with PSP.  From console-lite games to straight up ports.