Next: PSP Go Phone, or PSP 2?

As a gaming platform, the current-style PSP's star is setting. PSP sales have been declining for over a year, and PSP Go sales are in the basement. And PSP games are starting to pop up on iOS devices, including Final Fantasy I and II, LEGO Harry Potter, Grand Theft Auto: Chinatown Wars, and Madden NFL 11.

Analysts expect the iPhone install base to hit 100 million by 2011. Sony's PSP base is currently stalling at around 65 million users worldwide.

In fact "core" game developers are increasingly bypassing the PSP for the iPhone and its iOS peers. Capcom pulled together an iPhone version of Street Fighter IV last March, but never bothered with a PSP version. Other iOS-but-not-PSP games include Civilization Revolution, Battlefield: Bad Company 2, The Sims 3, Ultimate Mortal Kombat 3, Mirror's Edge, Tony Hawk's Pro Skater 2, and Need for Speed: Hot Pursuit.