We'd like to think that there's nothing wrong with our beloved handheld. However, the truth is that many people, misinformed or not, do not believe in Sony's platform. Gamasutra asked a number of industry professionals about what they think is wrong about PSP, if there is anything at all.

• David Cole from DFC Intelligence points out that the price drop is a good step, but that's not enough. "I think a new form factor is needed more than a price cut."
• Ed Barton from Screen Digest is frustrated at the constant comparisons to Nintendo DS: "We forecast that the global installed base of PSP users will be around 29 million at the end of 2007, generating $1.9 billion in software sales. Lifetime software sales at the end of 2007 will be around $4.5 billion. If this is 'failing,' then failure just got a huge brand makeover."
• Mike Wolf from ABI Research thinks that anti-Sony fanboyism runs wild due to high expectations placed on Sony ... due to their ambitious claims. "I believe the device's perceived 'failure' by some is due to the device struggling to live up to Sony's own marketing of the product, much like what the PS3 is going through today."

I completely agree with many of the things these professionals have to say about PSP. It's true that PSP is certainly not a failure, but it could've been far more successful as well. Sony has made a ton of mistakes this life cycle, but as they've been recently showing, things can easily change with a refocused effort.

Don't throw out your handhelds: there's a lot of life left in them. According to an analyst at DFC Intelligence, the ever-expanding market for both DS and PSP will help allow it to beat the current generation systems: "Under the right scenario, by 2011 the combined installed base of the DS and PSP could exceed that for the Nintendo Wii, Sony PlayStation 3 and Microsoft Xbox 360," noted David Cole.

While Nintendo will be responsible for much of the growth of the handheld industry, Sony is certainly not out of the game--they will "establish a solid position in the marketplace" (if they haven't already). Cole reminds investors that "existing console game publishers have found it is possible to make over $100 million in revenue from a single PSP title based on the right franchise," a figure that's not to be scoffed at.

Ultimately, PSP's success will be determined by a number of factors, with Sony's support for the platform being key. Sony said they're working on exciting new things for the platform at GDC--hopefully, it's true.

[Via GameDaily BIZ]