Analyst: PSP2 “dead on arrival”

The PSP has had a rough past few years in the West. Japan’s still supporting the system well but it’s kind of fallen behind over here. Videogame analyst Michael Pachter thinks that this and the continued success of idevices could well be fatal to the performance on the heavily-rumored successor.

He stated in the latest episode of his show, Pack Attack: “I think the PSP was dead on arrival and I think the PSP2 is going to be dead on arrival.”

But it’s not just Sony who are in trouble.

“We’re approaching saturation in the handheld market. We’re starting to see DS hardware sales crack, the iPod Touch is cutting into the handheld market. It looks to me like young kids are just as happy playing with the iPod Touch.”

Should Nintendo be worried when it comes to their new device, the 3DS? “The 3DS will prolong the handheld market for manufacturers, but ultimately I think handhelds are in trouble. What’s the difference if you play Tetris on an iPod Touch or on a DS? Well, you pay a buck on the iPod Touch and you pay $20 on the DS.”

“After the 3DS has had its little rush I think the handhelds will continue to decline,” Pachter added.