But we thought the PSP wasn't your competition, big N! Despite having said that they don't care about the PSP and its wacky non-gaming features, Nintendo has announced that it plans to add music and video playback to the Nintendo DS with an adapter that will accept memory cards (but what kind of memory cards?) The adapter will apparently play MP3 audio files and MPEG-4 video files. It will sell for 5,000Y, which is around $50. So, let's see - $149 for the DS plus $50 for the adapter, and you've got PSP prices. Ponder ye.
[Correction - Yes, it is 5,000Y, not 50,000Y]