Well all know Sony loses money off the PS3, while gaining money off the PS2 and PSP. The PS2 allowed Sony to swim in pools of cash due to its massive market share and large games library. Can you say the same about the PSP? In terms of production cost, the PSP is smaller than the PS2, so there are less material costs involved with manufacturing. Last time I heard, Sony makes roughly $12 on every $130 PS2 sold. I don't know if its accurate or not, but please correct me if I am wrong. The PS2's true profits came from the games with massive third party support.
So anyways, how good are Sony's profits from the PSP? The hardware sales of PSP are okay. After all, the PSP stole 35% handheld market share from Nintendo, so its the most successful non-Nintendo handheld out there. However the software attachment rate for PSP is slightly lower than expected, so I am wondering if the PSP is making enough profit for Sony to warrant a PSP2. Your thoughts?
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