I seriously doubt it. Nintendo's handheld dominance is something that has never wavered. Even when the Gamecube was being laughed at last generation, the GBA was outselling the PS2 in America most weeks, and sometimes in Japan. Remember the 5th generation, where the Nintendo 64 was being whooped by the Playstation, and even the great Mario was being made fun of by the hip, awesome Crash Bandicoot? Well, back then, Nintendo had a system that actually had a 10 year plan (Gameboy was selling consistently for a long time, Pokemon Red/Blue with it). It sold more than the Playstation that generation.

The PSP was outselling the DS at first because Nintendo's image was fairly weak back in 2004 and 2005, but now, Nintendo is pretty much unstoppable (both in the handheld and console space). Some company would have to completely destroy their image again, and come back with a handheld that was hyped to hell. The PSP fit that qualification, but even then, Nintendo's games were too much.

Sony had the right hardware to do the job but they completely ignored the software and the initial sale spike dropped. If not for all the hacking happening on the PSP, the sales would be really bad. At least they are correcting the lack of software now.

as long as they dont piss off third partys, they wont lose. they did with the format in N64 and Sony did it with complex archetecture.

as long as their next handheld is developer friendly they should do fine

As long as Nintendo continue to push their flagship handheld games, it's rather difficult for any competitor to overtake them. I wonder whether any competing handheld will ever be released completely devoid of multimedia functions (just like the Game Gear!).

@Joeykanga: not the crappy Ngage nokia are infamous for. something more of the lines of SAT-N64 graphics atleast. That would be interesting.

Some day...

PSP4 is my bet.

Sony Might have another chance in the Future to beat Nintendo in the handheld market, Microsoft might also if they entered it, but as for other companies beating Nintendo, I don't think so. I think it's pretty much brand name on account of the N-gage, Gizmondo and the other handhelds that have tried to succeed had failed instead. But it's really hard to Beat Nintendo In the handheld market though since they have pretty much dominated it the last 19 years or so...

Here in Germany the price of the DS always was much lower than PSP's. If it had been the same PSP would be in front, no doubt, but when Sony didn't cut the price aggressively enough it was clear which product parents would buy for their kids. And if one handheld once leads 2:1 it has a dramatic effect on the mass market which always buys the device which is in lead.

Eventually, yes, t will happen, I just have trouble imagining the circumstances that will result in this.

If it's going to happen, I'll say this much: it won't be by a Playstation brand. Sony needs to completely change their strategy if they want a handheld that can match Nintendo's. I still doubt they're capable of ever coming up with something that can match Pokemon, Super Mario Bros, or Brain Age / Nintendogs. These games are monstrous system sellers.

@Nickelbackro: Not even close. The Genesis took quite a lot out of Nintendo (their NES/SNES users). The PSP looks like it's hardly affected Nintendo's handheld at all, seeing as how it'll be by far their best selling system ever (with the Wii being a possible contender).