Look at this new articule... seems like the OP didn't assume correctly.

http://www.destructoid.com/sony-dropped-ngp-features-to-keep-it-affordable--194029.phtml

it means ngp does not have the library psp does. You're not looking hard enough if you can't see that.

PSP has been lauded, in japan especially, as having one of the best libraries of all time. 

Did Sony's decision to support the PS1 after launching the PS2 mean the PS2 would have a high price?

Dis Sony's decision to support the PS2 after launching the PS3 mean the PS3 would have a high price?

Nope!

No it didn't. Why?

$599 NGP confirmed!

i think the psp needs a price drop to $99 and damn soon, its pathetic for sony to still charge $169.99 for  the psp. when the tech its based on is $99, i wana buy a few more psp's for my friends and family. but i wont until the price hits the $99 mark, otherwise i might just buy a few of the other system ( 3ds ) if sony doesnt get this heads out of there a$$. 

i love the psp's library of rpgs and games in general and i want my family to experience this great system, but its price for the tech is absurd.

the ngp's price hopefully wont exceed $300 by too much

Don't crucify me Sony fans, but I sorta feel like Sony is sending this thing out to be inevitably slaughtered (but in all fairness, I think 3DS has its flaws too and will be a pretty drastic decline from DS's success)

Besides Sony's coexisting gaming centered phone, now they are saying they are trying to keep the PSP alive at the same time as well? That's THREE Sony gaming handhelds. So not only is Sony going to be facing heavy competition externally with Iphone and other smartphones (which by Sony's own admission they are now competing with simply by releasing the Ericson) and the juggernaut 3DS, but they will be facing competition among their own devices. If one PSP didn't do well in sales (besides Japan, where handheld gaming dominates), I don't see why Sony would think that three would. People who want a cheap gaming centered device with an established library will opt for the PSP, while people who want a multimedia gaming device and a phone will get the Ericson. And NGP will get stuck with the crumbs on the table.

Throw in the rumored price of $400, seemingly more third party support on Nintendo's handheld, and no 3D to help it compete with the 3DS, seems to me this device has very little chance of success.

Of course, as always, it'll boil down to the games, and who knows, if the NGP can get some hugely popular games to call its own, it could push some hardware. But I feel at the very least, they are going to send this thing stumbling out of the gate like the PS3, and will be forced to play catch up the rest of the gen.

God I wish the NGP is like the PS3. Nintendo has never lost the handheld war, they always win, what Sony is doing is trying to give people choices, and enough with the 3D has being some king of advantage already. The NGP is not going to outsell the 3DS, we get it, Sony gets it. What they are trying to do is not only sell 60 million console but offer software that plays well and gives us a console experience on the Go. 

The PSP biggest weakness was not the DS, it was its control, it was just bad. DS offered a much better experience, but I feel now, they are going to compete now when it comes to the experience minus the gimmick. I love the Ipod Touch, The Evo, The PSP, but it never gives me the experience, the control I really want want playing. I don't want angry birds, slicing games all day. 

NGP will give people like me who don't care for Nintendo games a chance to experience great gaming on the Go for the first time.