1. PSP is being sold as a loss, Sony is going in red by selling this machine too early and too cheap. http://www.kotaku.com/gaming/psp/launch/so...sold-032557.php 2. The gap between software sales and PSP sales is huge! Everyone is buying a PSP but no one is buying the games which Sony depends to compensate for its hardware loses. This is the reason why in north america, Sony forced the value pack bundle and forcing big retailers to bundle the value pack with bunch of games you wouldnt consider even purchasing (EA games). Even though DS also had a bad software line-up, most if not all its games were constantly ranked in top 10 sales, while not so with PSP. http://www.the-magicbox.com/charts.htm 3. UMD media will obviously fail because of laxed security on Memory sticks and high prices on UMD movies which cost more than a DVD!. It is no surprise that people will download, extract and upload movies they already own into PSP instead of buying it on UMD format. This will be counterproductive to Sony's battle (RIAA) against music/movie piracy by making a machine warez friendly!!! http://www.firstadopter.com/fa/archives/000693.html 4. People who may consider purchasing a PS2 may now lean on getting a PSP instead, since it doesn't seem there is a big difference in game selection between these two consoles. Not to mention, PSP has almost same power in gfx than a PS2 and can do more than a PS2 and obviously costs cheaper than a PS2 when it was launched. Note that PSP is not profitable to Sony, while PS2 success in sales and games may be damaged by Sony competing against itself. http://www.us.playstation.com/psp/games.aspx?all No, we can't say the same with Nintendo, cause DS plays different games than GC as well as the GBA plays different games than both, while there is pretty much no difference between PS2 and PSP in games and gfx other than one being mobile and the other not. 5. Sony now has to diversify it's financial ressources, which is already in a big slum, in many new divisons, now it has to make UMD media and try to keep it alive (which will fail), try to compete against ipod with PSP media capabilities (which will also fail) and also try go compete against Nintendo in handheld games which seems a big risk, since Nintendo has beaten 8 different handheld competitors before. This can also be detrimental for Sony future projects now being forced to concentrate its games and ressources more on PSP than PS3 (which makes sense since PS3 will pretty much be delayed). Sony financial/management troubles: a) http://quote.bloomberg.com/apps/news?pid=1...zAs0&refer=asia B) http://www.gameinformer.com/NR/exeres/BDA0...74F3D179771.htm c) http://www.gamegossip.com/comment.php?id=12305 d) http://news.ft.com/cms/s/4e302fb4-8f1a-11d...000e2511c8.html Who will benefit from this Sony mistake? Maybe the consumer, maybe the competitors and maybe no one.