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Why the PSP Will Die

I remember Sega delivering a handheld system called the Game Gear. Both Sony and Sega have raved about the cool games you can play and how much better then Nintendo’s Game Boy they are. The problem both are facing is that Nintendo dominates in the handheld game market. The Game Boy was a success when it was launched, and its position has never been threatened.

To offset the Nintendo threat, Sony has packaged the PSP with extra features that look and read like a list of features available on the iPod:

  • Listen to music
  • View pictures
  • Watch movies

So, what is the PSP? Is it a game system or a broader entertainment system?

I know, I can hear all of the Sony supporters yelling right now that the PSP is a broad entertainment system. If that’s true, Sony has got it all wrong. Yes, the overall experience is better on a PSP—video is amazing, game play is great, and the rest is just extra candy. What Sony didn’t assess correctly is this: The iPod isn’t simply a hardware device; it’s one part of a three-team solution: iPod, iTunes, and iTunes Music Store.

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