Check out this interesting snippet:
"Tell me why you would buy a $600 PS3?" Peter Moore, a Microsoft vice president, said in an interview. "People are going to buy two (machines.) They're going to buy an Xbox and they're going to buy a Wii ... for the price of one PS3."
I think Microsoft's take on the situation may prove to be rather accurate.
Put it to you like this: I've been debating on whether to get a DS or PSP for about 6 months. For a long time it was neither--neither had any games that I thought made it worth buying. However, in the last 3 months, BOTH systems have really beefed it up in quality games.
Anyway, I can promise you I'll almost end up going with the DS due to its much lower price--if I thought the PSP was superior, I'd spend the extra cash, but I think both are equally awesome in very different ways.
But, I started thinking....I've gone with Nintendo EVERY system (over sega, sony, microsoft--even though I love halo). And I figured out the reason...I love their franchises. If you took away Marios, Zeldas, and Metroids, I'd never care about Nintendo again. That's probably why the New Super Mario Bros. is the final straw in me holding out on a DS.