PSP did fine.  People are obsessed with black/white fail/win comparisons.  As a first entry in the handheld gaming market, for exmaple, the PSP did better than the Xbox (another first entry device) did relative to the main competition - should MS have given up and declared it was a failure and left the market to Sony?

Of course not.  Similarly, the PSP did more than well enough that no sensible company would pack up their bags and just leave the market to Nintendo.  And if there is one thing Sony now knows all to well, it's sometimes easier to take marketshare steadily from someone else vs hang on to huge chunks of marketshare

PSP did well as an initial entry, with over 30% of the total marketshare defined by DS/PSP, and NGP I think is well positioned to do better.  The handheld market is large and while under threat from smart phones and the like I could still see it rising in size to easily allow both the 3DS and the NGP to succeed in their own right.

A lot more people need to realise business doesn't consist of a winner and everyone else just bails out and leaves them to it.  Every new release or change of strategy can change the market.  Sony demolished Nintendo in volume sales yet Nintendo came back with the same result a gen later.  Xbox sold relatively weakly yet MS came back and improved hugely with the 360.  Similarly Sony will look for improvement with their new device even if Nintendo ultimately sell more.

That's the nature of a competitive market.

Well no one knows fail better than Sega. So I'm glad they chimed in.

Seriously though, PSP did a great job appealing to a core market thanks mostly to its vastly superior hardware. DS didn't seem to have much of a core audience other than JRPG fans.

3DS seems to delivering where the original DS failed, core games. If the 3DS really takes off I think the NGP is pretty much doomed.

PSP did fine.  People are obsessed with black/white fail/win comparisons.  As a first entry in the handheld gaming market, for exmaple, the PSP did better than the Xbox (another first entry device) did relative to the main competition - should MS have given up and declared it was a failure and left the market to Sony?

Of course not.  Similarly, the PSP did more than well enough that no sensible company would pack up their bags and just leave the market to Nintendo.  And if there is one thing Sony now knows all to well, it's sometimes easier to take marketshare steadily from someone else vs hang on to huge chunks of marketshare

PSP did well as an initial entry, with over 30% of the total marketshare defined by DS/PSP, and NGP I think is well positioned to do better.  The handheld market is large and while under threat from smart phones and the like I could still see it rising in size to easily allow both the 3DS and the NGP to succeed in their own right.

A lot more people need to realise business doesn't consist of a winner and everyone else just bails out and leaves them to it.  Every new release or change of strategy can change the market.  Sony demolished Nintendo in volume sales yet Nintendo came back with the same result a gen later.  Xbox sold relatively weakly yet MS came back and improved hugely with the 360.  Similarly Sony will look for improvement with their new device even if Nintendo ultimately sell more.

That's the nature of a competitive market.

Well no one knows fail better than Sega. So I'm glad they chimed in.

Seriously though, PSP did a great job appealing to a core market thanks mostly to its vastly superior hardware. DS didn't seem to have much of a core audience other than JRPG fans.

3DS seems to delivering where the original DS failed, core games. If the 3DS really takes off I think the NGP is pretty much doomed.