Same problem as the PS3. Sony says its a swiss tool knife. People don't know what the devices have as a core use anymore. The stuff is then only been bought by the hardcore users that mostly hack the PSP with custom firmware to run homebrew.

Sony thinks: more functions will get a broader target group to sell to. No Sony. Putting in more and more different things and even more important having the marketing also shooting in 100 directions, the crowd doesn't see the PSP as a game device anymore. Heck many don't even see the PS3 as a game device anymore. For some its BluRay player first.

Oh and before I hear the SDF army shout and cry again: I own a 80GB PS3 and two white PSP's one Slim and one Fat (the last one having a IR keyboard foldable and a Picooz infra red chopper for fun --> see, no gaming but other use)

PSP rules.

Yep, there's quality on the way with Dissidia, FF13 Agito, Third Birthday, Resistance Retribution, KH:BbS and Patapon2(still to get Locoroco2 myself yet)all looking like great buys for PSP.
If there isn't a Monster hunter out in the west this year I'll be surprised as well. So it might not have the numbers that the DS has but the basic quality is way higher. I love 'em both though so I'm always happy on the damn train.

Its funny that even though the PSP can easily be hacked, the games (at least in japan) still sell. Crisis Core sold more than a million copies and Dissidia its on the same path. Developers need to try to add extras to their games to motivate gamers to buy the actual game instead of downloading it. Downloadable content, bonus material some things like that. i know it can be done. The PSP is a great little machine that can prove to be quite a graphic powerhouse (for a portable), look at Crisis Core, Resistance Retribution, God of War among others. Also a new design (not a slimmed downed version) would be nice.