I still believe though that in a world with the iPhone the PSP will still be a major player...
That's without a doubt, if for no other reason than how it can work with the PS3.
Secondly as has been said people change thier phones so often and not thier consoles... having the PSP remain an independant device makes sense (however cool a SE PSP phone looks). I wouldnt want to pay extra for the phone component only to want to upgrade it after 2 years... look at how much the iPhone has already changed.
Now, this all said, the iPod Touch is an iPhone, minus the phone.
I never knew the iPhone had the same graphical power as the PSP but the lack of buttons is going to hinder it from being a proper gaming device... it will just feel like another phone with games tacked on. That might be great for the casual market but for others they will want a device specifically designed for gaming.
I am not sure what the graphical power is but it does achieve the same resolution (720x480), and if I remember correctly it also has a 333mhz processor. I do not know about the memory though. However, I have seen some of the games and the touchscreen and tilt sensor does work well. What makes the iPhone a touch above something like the PSP is the App Store. Apple opened up the system to app developers and so things that can only be done on a PSP with custom firmware are readily available for the iPhone with the touch of a button.
If Sony were smart they would look at the apps available through custom firmware, make their own versions of those things, and sell them on the PlayStation Store. I would love PDA functionality, GPS, e-books (Sony even makes a reader), and others. Make it functional with Hulu (and iPlayer in the UK) so I can even get TV on the road.
Sony will have to get a move on because the good times of being the dominant portable device with console comparable graphics are over, Apple has this hold on people which is likely to lure many people and Sony can't keep making money with the PSP in its current state... just getting thinner and lighter... it needs a major overhaul!
At the current state it is in they will compete well if they just get better games. We need more Patapon and God of War quality games. If you want to make a Medieval game for it fine, but do it like Twisted Metal did, a new game, not a remake of an old game. I had a choice between $4.99 for Medieval for the PS1 or $14.99 for Medieval Resurrection. Considering the only difference is control layout and graphics, guess which I bought?
That $10 can go toward Super Stardust Portable.
And this brings up a major key for the PSP, PSN games are made for the PSP. Just look at them. Small, not graphically straining, good for pickup and play, and easy to learn. Sony should have every first-party PSN game have either a PSP version or remote play. And then they should push their third-party developers to do that too (I'm looking at you Capcom). Echochrome ported easily, Flow did alright, Super Stardust is getting there, rumors about Blast Factor and others are out there. Wipeout HD is just a graphical upgrade to Wipeout Pulse and Wipeout Pure (I think that is it).
They need to do more of this, negotiate for the third parties to work on it, and keep it going strong. And definitely more of this PS3 integration like Resistance is doing, but I would prefer playing games on my TV screen with a DS3 not require a $60 game, just a $2.99-$4.99 downloadable app.
See, if they did more of this stuff any PS3 owner looking for a portable gaming device would pass up on the iPhone because of all the stuff their PS3 will allow a PSP to do. And these are just thoughts based on what I have seen the system already do.
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the only place ive access to wi-fi is at school. ive no internet at work and my internet at home cant stream music. or if not 3g network, at least built in support for sirus xm radio. my main goal is to get either internet music or satalite radio incoperated into the psp so i can listen to that while on the go in my car or at work.
Satellite radio would be nice. Of course I would need a satellite capable attachment in the US first....
Still though, a cheap 1GB card will give you plenty of music.
I see where you are coming from but as I rarely use the radio for music anymore I don't see the need.