Might help if they stopped being scared of the homebrew community and embraced it and helped it grow. There is a ton of fantastic homebrew software that makes the psp a far more capable device than it is with just the official firmwares. It seems like Sony has been trying to hold it back instead of embracing the capabilities of the hardware.
why psp failed,
"...Sony originally promoted the PSP as a multimedia device, hoping consumers would catch on to its music and video playback features....."
it means nintendo was not the competitor but rather other devices that offered multimedia functions such as the ipod or pda devices. the talk of a psp phone will make the psp a competitor to the iphone and other multimedia phones. if that happens, psp will truly die.
Piracy?!?! on the PSP? That is a lie. It is a one step solution for the Nintendo DS to pirate games... The PSP is harder to hack/mod than the DS. So that is not the problem with the PSP. The major problem is the lack of support, much like the PS3.
On the other the PSP2, my last teleporter broke will I was in Dominican Republic... so I could use another...