The people of Games Radar speak about Tokyo Game Show in their latest podcast. They speak a little bit about PSP, and talk about the impressive Metal Gear Solid: Portable Ops and Final Fantasy VII: Crisis Core, and lament about how the PSP might've been more successful if such beautiful, fully developed games were released, or announced, earlier in the PSP's life cycle. They seem to have come to a conclusion that Japanese developers believe that the PSP isn't in the process of failing... it's already failed. They quote a Clover Studios producer (guys behind the awesome Viewtiful Joe and Okami) as saying "Sony's lost this generation. I'll be real interested to see what they'll do with PSP2. I think that's where they have a chance to come off a failure and really succeed."
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