To be honest the device itself is somewhat meaningless now. I think Sony dropped the ball on this one. They're too busy listing off features without actually addressing their most crucial failing. Their current 'front end' software experience all suck.
Nintendo and Sony's competition is the iPhone/iPad/iTouch. They're not competing with each other anymore. People are going to start asking
1) Ok I have an iTouch/iPad, so why do I need another gaming system?
2) Ok I have an iPhone which does games already, why do I need something else that does only games?
And the reality is that devs could make PSP/DS type games on current Apple devices without much issue.
I think the only issue why publishers might not be going too hard core on the Apple stuff is because of the rock bottom pricing required to get cheap users to buy stuff on there. There's just a huge psychological barrier for people using Apple stores now to anything over 99 cents. If that rock bottom pricing structure continues, it might help Nintendo/Sony to survive perhaps one more iteration. But they really need to look at Xbox Live and the iPad/iPhone store and see how the total user experience of not just playing games, but buying them, as well as everything else. Rovio (Angry Birds) isn't on the Android Store because there's no good integration of a payment system within the game itself. They're separate and it's pretty jarring for most users. Users are expecting a lot more integration and easy of use from their experience and will migrate to the defacto standard, Apple, if your device doesn't.
Nintendo and Sony's competition is the iPhone/iPad/iTouch. They're not competing with each other anymore. People are going to start asking
1) Ok I have an iTouch/iPad, so why do I need another gaming system?
2) Ok I have an iPhone which does games already, why do I need something else that does only games?
And the reality is that devs could make PSP/DS type games on current Apple devices without much issue.
I think the only issue why publishers might not be going too hard core on the Apple stuff is because of the rock bottom pricing required to get cheap users to buy stuff on there. There's just a huge psychological barrier for people using Apple stores now to anything over 99 cents. If that rock bottom pricing structure continues, it might help Nintendo/Sony to survive perhaps one more iteration. But they really need to look at Xbox Live and the iPad/iPhone store and see how the total user experience of not just playing games, but buying them, as well as everything else. Rovio (Angry Birds) isn't on the Android Store because there's no good integration of a payment system within the game itself. They're separate and it's pretty jarring for most users. Users are expecting a lot more integration and easy of use from their experience and will migrate to the defacto standard, Apple, if your device doesn't.