there is god of war, a couple of final fantasy games and other goodies which will come to the psp. Hardware sales are good so I think it will have a successful 2008. Not ds successful but who cares. I am tempted myself to buy one if there is a gow bundle I might bite.

yes, that's what I mean
that's why the hardware sales are still respectable while you can complain about the software sales

and besides that
look at europe
the PSP has sold more units
than the 64, NES, SNES, DC, Mega Drive, Xbox or Gamecube have in Europe
and the 360 won't cath it either
and saying that it's done that because it's a handheld and cheaper won't cut it, because the GBA has been greatly outsold buy the PSX and PS2 eventhough it was cheaper too..

so for a first handheld of Sony, you should rather call it a succes than a failure..

Why is everyone so down on the PSP. For nearly the whole year its sales has been > 360 or PS3. At times even better than Wii. Compared to DS it sucks, but, compared to any non-Nintendo handheld is has been a huge success.

It is still making $$ for Sony, not only in games, but other entertainment venues. I would think Sony could only consider it a success.

Here it is compared to Xbox and Gamecube. Xbox considered to be ok, even though money loser, and Gamecube considered to be a loser even though it made a lot of profit.

GRAPH = Much higher sales at same point in life and trending higher to have a much larger lifetime sales.

 
Now, compared to the X360 and PS3. Both money losers, so far.

GRAPH2 = Same thing.

PSP is not a losing product. Sure it didn't touch the DS. But, it has take a large % of the market from Nintendo handhelds, much bigger than ANY previous competitor.

Expect a PSP2. They will 'fix' the hardware areas that caused it to not beat the DS and certainly focus on reducing the entry price to sub $200 out the gate. 

 The PSP was supposed to be about the same as for a PS2 title. The DS was supposed to be about half that, on average of course.

Why do they need to make a psp 2?

it's not the time yet
it would be crazy to come with a PSP2 while the NDS is so hot right now

@Ajax

Ever thought that ds owners will move up to psp? Since the psp is more nexgen than the nexgen nintendo handheld?

If the PSP were released against the GBA, then things certainly wouldn't have looked like they do now. The DS right now is a "JUGGERNAUT... BITCH!," and even that statement is underwhelming to what it really is.

I'm just really curious what Nintendo and Sony will bring to their next handheld outing. Some of those patents are really interesting, and I'm looking forward to see how both companies deliver.

I still dont know why you people expect another psp..

Sony need to watch 3 things with their next portable device.

1) Pirating

2) Multi media player. The PSP is very handy for portable music, videos etc... but they missed out on the software money as a result. Sony need to focus it as a software first machine.

3) Price. Sony need it to be cheap and they need to make profit on it day 1. Don't include all this fancy technology that no one cares about. Silly idea.