@Xxain
Citing piracy as a reason for download only games is a cop out. The companies want to make "more" profit. PSP would not be alive if Sony was losing money on it. Software sales may be down but hardware sales were up.
Sony wanted PSP to replace your walkmens, your PMPs your gameboys etc. It is a multimedia device not just game and the focus was not on just games. Once this is rectified situation will improve.
One reason PSP did not take off (which is actually debatable as 47 Million is a HUGE number by any standards) as compared to DS is because DS has backward compatibility with gameboy. I bought one simply because it would be easier for me to have only one device. Innovative games (nintendogs, brain games) with DS added more casual gamers into the mix which did not happen with PSP but they came in later.
The library of PSP was filled with ports (and not so good ones at that), better games sold well. Sony had a chance with PSN to make PS1 games available on PSP which a lot of people would not have minded paying for again (including me) but they botched it.
I have used my PSP for skype, for music and for games. I also play PS1 games I own and the ones I got from PSN on it. I have not pirated games for it. Just because CFW is popular it doesn't mean people are pirating games.
Again, piracy is not an excuse to make people (who already pay for their games) pay for LESS.