With all the competition in the video game industry, Nintendo has been struggling with Sony and Microsoft; the Wii has been very scarce when it comes to games. Sony had Resistance 2, Microsoft had Gears of War 2. The last game that Nintendo swept the field with was, sadly, Super Smash Bros. Brawl, and that's just in the console aisle of things. When it comes to handhelds, Nintendo has unanimously taken the crowd, ever since the Game Boy. Nintendo's handheld franchise really showed its colors when the PSP came onto the scene. While the PSP has its ups when it came to media diversity, such as the ability to play movies and music, the PSP lacked one thing; games. Even now in 2008, the PSP and DS franchises remain where they were a year ago. The DS has more titles and is more interactive, and the PSP still sits where it was a year ago; title-less and less quality. 
Now, there are 2 new remakes of new-gen handhelds. The Nintendo DSi and the PSP-3000. From my outlook of things, the DSi will do better on the account of two things; titles and new features, whereas the PSP-3000 still is stuck in the "no games" phase. The DSi now has an SD slot, which can (and will) store media such as music and videos that ARE accessible via the firmware for the DSi, which will be able to update just as the firmware for the PSP does. On top of storing data and playing it, you can actually modify them. With the DSi, you can make music low-pitched or high-pitched, and with the picture application you can edit pictures. Blackmail, anyone?
As for the "games" aspect of it all, the DS has more titles than the PSP, and more noticeable. The PSP does have good games, don't get me wrong, but the worthwhile titles only come once in a blue moon. The DS has titles such as Super Mario 64, Pokemon, Final Fantasies III, V, and XII and other player-friendly franchises, and the PSP has a few luster games. Metal Gear, Final Fantasy and... that's about it. So far, the 3000 model hasn't sold well, the only actual difference from the PSP (lite) 2000 and the 3000 is the brightness of the screen, as well as issues with graphics on some games that apparently "move too fast". Plus, when you put a DS next to a PSP, which one do you feel more comfortable playing? The PSP can be easy, but as the owner of both portables, you feel like an alien when you pick up a PSP after playing a DS, and the same doesn't happen when you reverse the action. In fact, I feel more comfortable playing a DS after playing a PSP any given day, but that's just my opinion. Call me a Nintendo fanboy if you want.
Problems with the PSP-3000 http://blog.newpspwallpapers.com/2008/10/22/psp-3000-sucks/
