@soriku
I agree that DS will win the Portable warS. DS2 will likely beat PSP2, because based on the PS3 I think Sony is likely to make a portable with more media, xbox level graphics, and a high price, with a paltry game library.

Yep. If Sony had had a Blu-Ray drive, like the 360 had an optional HD-DVD drive, then cut the price, it would have done a lot better. Though, I don't think getting rid of mulitmedia capabilities would be a good thing, because there's not any extra hardware for that, as a standard HD was a good idea.

And I reckon they should have got rid of the multimdeia functions for the PSP, saved some money, also, doing that, they could make sure that the memory card for the PSP had limited functionality (wouldn't be needed for multimedia sutff), and be able to reduce piracy.

Well, Sony could have made harware. It wouldn;t have been that hard to make a PSP and a Sony zune-like player with an inTUNE online store (blatant iTune copy there :P) at a cheaper price than Ipod with the same (online store) price as iTunes.

I thought of something. I think trying to pioneer blu-ray with PS3 was a mistake. I know that is obvious, but I think Sony should have followed a straight gaming console/pioneer new format/straight gaming console/pioneer new format model. Pioneering a new format every generation will never work... isn't that obvious? I wonder what made Sony think it would work, especially considering how long VHS lasted...

its very easy to improve a companys tactics after its already proven a be less than brilliant (avoiding the word failure here)

what if Nintendo used CDs in the N64?

What if Nintnedo never pissed Sony off in the snes days?

What if MS designed the 360 properly in the first place?

Although they could all be interesting topics, discussion in them is ultimatly pointless.

If sony had marketting the PSP differently and it was suddenly a blazing success your analysis goes on as if Nintendo carried on regardless, they wouldnt just ignore their problem, they would have stepped up their selling strategy accordingly.

I dont think anything sony could have done would have been a match for the casual/non gamer attack that Nintendo masterminded with the DS and Wii, I dont think theres that many gamers that want to relive old games over and over, on handheld or other wise. Targetting an untapped market was more benificial than anyone expected and your PS1 strategy would be as useless as Sonys actual PSP strategy was against it.
Nintendo's ability to make games that appeal to all ages, plus the fact that they are untouchable in handhelds plus their decades of experience was just something sony couldnt just come along and defeat like they did with the PS1 vs N64.

A more interesting discussion would be what could sony do now to save the PSP, or do they infact even need to save it, is it OK to have a smaller, but respectable % of the market?

I think if the PS3 launched six months earlier without blu-ray at $399, the 360 would all but be dead right now. They would even be ahead of the Wii. They could have made blu-ray an add-on for $199 too and probably sold several million of them too.

@nine
I don't think they need to save the PSP
I think they should do the PSP differently though in order to do better.
On a side note, why is brain age such a sucess? I bought it for my DS, and it is the most boring game I have ever played. My friend bought big brain acedmy, and that was just as bad. Why is it a system seller? (they even have it in a bundle now >.>)

to add to my ramble, Blueray was not a mistake, the format is looking very strong right now and if it wasnt for its inclusion inthe PS3 it wouldnt have stood a chance, Sony stands to gain a hell of a lot if blueray becomes standard, even if it isnt the 'ideal' storage medium for games, i do believe DVD9 is too small for next gen gfx.

Even if the PS3 was cheap, it still wouldnt have fared against the wii, the 360 had alot of momentum when the wii was launched, the core wasnt much more expensive and it had a fair few good games, it still didnt stand a chance, The PS3 being more like a 360 and coming out sooner would have probably just made the confused consumer even more confused and their choice to buy a wii would be that little bit clearer.

To answer your question about brain training, theyre not 'games'. theyre fun education software in a way and the market for things like that reaches a massive age range, i have not met a single person that hasnt liked them in some way, from my dad who is 60+ and never touched a video game, to my 12 yr old niece. No conventional game can compete with that sales wise. The may not appeal to your so called hardcore gamer, but that gamer is about 20% of the market that nintendo are targetting with their current consoles. 

If the ps3 was chape it would be sold out right now, if it better than a ps2 and as cheap as a 360, what do you expect? Same sales?