A prominent industry analyst believes that Sony's upcoming PSP2 will hit the saturated handheld market DOA - or dead on arrival.
"I think the PSP was dead on arrival and I think the PSP2 is going to be dead on arrival," Wedbush Morgan analyst Michael Pachter opined during a recent "Pach Attack" webcast.
"[Clearly], 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."
According to Pachter, young kids today are just as happy with an iPod Touch as a dedicated handheld game console.
"[Yes], 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. [So], after the 3DS has had its little rush I think the handhelds will continue to decline," he added.
[Via MCV UK]