Keep in mind though that the PSP is not just a handheld console, it's a total multimedia tool. It plays movies and music right out of the box so naturally Sony will put a higher asking price on it. I think the idea with the PSP isn't just to target gamers. Time will tell.
Yeah, and CD-i, 3DO, the Memorex VIS, and Halcyon all did these things too. That was then and this is now, but as a gamer, I'd much prefer a gaming system and that's it. If I want a PDA, I'll get a PDA. I don't need Sony to make a really stripped down version of one for me, because it will have poorer battery life and not be nearly as versatile. Besides, take a look at the Tapwave Zodiac and the Nokia N-Gage and the Infinium Labs Phantom. None has Sony's muscle backing it, but all of them are trying to do the same thing Sony wants to do with PSP. It's a shame that Nintendo is so stupid about their games sometimes, because I really like the way they don't add a bunch of stuff to their consoles that I don't need (because I already have something else that does it better anyway).