There's no doubt that the PSP hasn't done as stellar as everyone has hoped. But that doesn't mean it's done poorly, either. MTV News spoke with Sony's Phil Harrison about the performance of the PSP so far. He notes that the PSP is doing a "very good job," distinct from the "great job" that Sony did on PS1 and PS2. He thinks that "most people use their PSP at home," an oddity that he'd like to change. Finally, he praised Nintendo and the DS, stating: "Nintendo should be congratulated... [DS owners] are our customers of tomorrow."
Certainly, as Nintendo DS owners get older, they'll most likely look towards products that satisfy a more mature taste. It happened with the transition from Super Nintendo and Nintendo 64 to Playstation and PlayStation 2, and it may happen again.