If they are not in the game business, then why are they in the game business?

Actually, I own every single Sony console. Just because the PS3 and PSP are not perfect, does not mean that I do not own them.

 Don't forget, if portables such as the Gamegear and Atari Lynx were the same price as the Gameboy, then Nintendo would have lost the crown as portable champion.

Doesn't really mean anything. All that means is Sony is trying to make UMD succeed in those commercials. Obviously they are going to advertise it. Not only that, but it has been a while since I even saw a commercial with "UMD" mentioned. Truth is, UMD is not Sony's future.

I keep forgetting about Gameboy Advance Video. It's cool how the Gameboy Advance can play movies, but it did not succeed. It did worse than UMD. At least people know what UMD is. More people never even knew about Gameboy Advance Video.

Well, it is your opinion that the PSP has a better line up of video games than the DS in 2007. I personally don't like Castlevania or Parrappa. And what is GoW? I keep thinking "Gears of War" but that would be impossible.

Well, maybe PSP sales might pick up in the future. It has been about 2-3 years since the thing has been released, so it's about time it starts doing better.

 thats true, especially since the PSP2 is rumored to support mini blu-ray discs that hold 14GB single layer 28 dual layer.

True. Dreamcast, Gamecube, and Xbox were not successful compared to the Playstation 2. Like I said, all consoles are good, and all can appear to be successful, depending on what you compare it to, and how you view it. Xbox compared to Dreamcast is successful, but fails miserably compared to Playstation 2. Dreamcast is successful compared to Atari Jaguar, but  not compared to the Gamecube. Sega Gamegear is successful compared to Atari Lynx, but not compared to Gameboy. Even Atari Jaguar is successful when compared to Apple Pippin, but when compared to Playstation 2, it's Game Over. And well... for Apple Pippin, I guess it is still a marvelous piece of technology. So at the end, it all depends on how you view the consoles, and what you compare it to. Playstation Portable is not a success if compared to most of Nintendo's portables, but, is a success when compared to Nokia N-Gage and Gizmondo.

Also, Gamecube sold a little bit more than the Playstation Portable, but not too much more. In due time, the Playstation Portable should surpass the Gamecube and Xbox, which is actually kind of sad.

Well, that's if there is going to be a PSP2. If it would support Blu-Ray Discs that hold 14GB, that would probably send Sony back further. It would just cost more money, and more people would dismiss it. PSP is already stronger than the DS, yet is losing. What makes Sony think that by adding more power, they will get more sales? In fact, for Sony, it's the other way around. The more power they add, the worse they do. Sony could have micro Super Blu-Ray gems (yes, the CDs are replaced with gems) that hold 500,000 GB per layer, 128 quadruple layer, and still lose to Nintendo in the portable department. At the end, it's all about the games.

Firstly - no matter how well the PSP does (from here), Sony will consider it a success - and many industry figures will consider it a failure. So it depends how you look at it.

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A have a few thoughts on the situation:

 - the PSP will always have a market as a "non-gaming" device. It does have a lovely screen - its best asset - and this alone, should keep sales going for a long time. Consider that it also plays music, videos, great for homebrew, lots of quality games... and it should have legs.

 - I always thought that a PSP that uses CARTRIDGES would be an incredibly awesome device. The memstick is a little like this - but games are not being "released" on it (maybe this is why it is so good for warez). But Sony is too heavily involved in disc medium to do this (and too proud). If they would have released the PSP with cart only, it may well have won this generation (or got a lot closer). {battery, loading times, more compact games, etc}

 - The design & price of the PSP make it hard to iterate the device. Its expensive, so people are less likely buy an upgraded version. And apart from a touch screen (that may be problematic design-wise) Im not sure what they could put into a PSP2. Apart from tinkering, Sony can't really release an improved model for another 3-4 years.

 - I work at a company that makes premium mobile titles (phones). My boss made a strategic decision a year ago not too support the PSP - purely because its going to get HAMMERED by mobile devices (i.e. N95, etc..). There are already a heap of mobile devices out there that do exactly the same things that the PSP does - PLUS a heap more will be coming out shortly. A lot of them are more expensive, but like everything, price will drop over time (etc). Within a couple of years, there will be little point to owning a PSP rather than a decent phone. The last real advantage the PSP over mobile is quality game titles. This will help the PSP for a while, but once the new "N-gage" (series of Nokia devices) is out for a while - the PSP will be overwhelmed (game-wise).

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To conclude - the PSP still has good life in it yet. Sony may need to keep dropping the price, but that should drive sales for a couple of years to come. The biggest  threat is actually coming from the mobile (phone) industry - and Nokia. Once the new N-gage platform hits, it won't take long before some awesome games arrive. And within a year (two at most) after this arrival, the PSP will start to be swamped. Once this happens - its game over for the PSP. No company will prefer to develop for the PSP, rather than N-gage/mobiles  (lower dev cost, significantly higher install base, no limit to lifespan, huge amounts of growth to come).

For me the psp is doomed IF they make loco roco 2 for the ps3. I heard rumours that this is true. Anybody have a link for news on this?

Sure it would help the ps3 I bit, but loco roco for me is by far the best psp game and jumping from psp to ps3 would mean the psp losing its only credible up coming game.