The Sony warehouses are slowly filling up with stockpiles of "finished gaming hardware." Could it be the PlayStation 2 or PlayStation 3? P.J. McNealy from American Technology Research thinks it's the PSP. "[The PSP] has lost momentum. Nintendo has had a great run since it launched the DS Lite and Sony needs to regain some ground." Due to the recent sales boost of DS Lite, and the commercial success of major DS software releases, the analyst expects that Sony will drop the price of the PSP to a mere $149, $50 less than what it is right now.
According to McNealy, this can give Sony a major advantage. Nintendo is unlikely to drop the DS's price from $129 due to its inability to meet demand. Sony's PSP comes with additional functionality, such as the ability to view movies, that will appear to make it a much greater value to consumers. For the full report, visit CNN.