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Sony has had a rough go of it this video game generation. The PlayStation 3, while successfully being the sacrificial lamb for the inception of Blu-ray, has overall been a disappointment when compared to its predecessors. The PSP has picked up steam as of late, but it took years to get there, and in both the handheld and console gaming markets Sony found itself looking up at Nintendo. Then came the announcement of the Nintendo 3DS and it looked like the PSP would be buried for good.
But Sony is not one to go down without a fight, and they are primed to fight back with their announcement of the PSP2. It won't have a fancy 3D screen like the 3DS, but it will have some fancy features of its own, and features that gamers are expected to really care about.
The first of these is dual analogy sticks. This is something that gamers have been asking for in a handheld device for years. Among other advantages, the primary advantage of this is that it will finally make FPS games on a handheld device worthwhile. Aiming without a right analog stick is very difficult, and the addition of this analog stick instantly makes the PSP2 a serious platform for serious gamers.
Secondly is the graphics. The PSP had a big leg up on the Nintendo DS graphically, and the PSP2 will be extending that lead over the 3DS. Early reports are that PSP2 graphics will rival that of early PS3 games. While that may be a bit ambitious, it's nonetheless clear that the graphical potential in the device will be massive.
Finally, online integration is the last of the PSP2's killer apps. Rumors are swirling that the PSP2 will include not only wifi, but 3g data, which will allow users to stay connected to the PlayStation Network at all times. Even though 3g gaming may be a dream (the latency would be far too large), being connected to the PSN at all times to sync trophies, browse the PlayStation Store, and check out your friends list is a huge boon for avid gamers.
With the PSP2, Sony appears to have a real winner on their hands. Now the challenge is pricing it in a way that doesn't drive away consumers before they ever get started. If Sony approaches this with the same mindset that they did with the PS3, that gamers will get a second job to buy one, then they may well be doomed to face the same struggles they did with the PS3. The Nintendo 3DS will launch for $250 and the PSP2 will need to be competitive with that price range right out of the gate. If they do that, it will be quite a round of the console wars.