I agree, but the price point is the selector for the target audience.
$350 vs $150. I would buy a handheld that may be broken in a few months for my kid for $150, the same thing cannot be said about a $350 machine... I would snap that for myself instead
Loads of adult people are communting or would like to play a quick game in a tea break, or lunch time etc.
They are the ones getting the PSP. Count me in.
It is pretty evident that there is zero profit, if not loss is on the $350 price, while the DS device uses existing technology, that has become very cheap due to mass market manufacturing of the GBA, so the device itself will be profitable, or at least leave Nintendo enough freedom to give substantial margin to retailers, while Sony may be at loss for some time - if the customer won't buy a few games at least every week.
It is certainly not just piracy that made the decision to only Sony manufacturing UMD disks, and don't let even develpers to have access to them.
I am fairly sure the DS is specced the way it is to re-use existing manufacturing potential, while in the case of PSP that is doubtful to say the least, unless to phase ps2 production completely out in favour of PSP, and push PS3 ahead.
Sony has pretty much hijacked adult, mainstream gaming from previous players in the field, the N, Sega, Amiga folks are grown up now. While some may stick with a N product many chose what was the best for their more mature interest in gaming, that's why PS2 has a massive target audience, and that's why PSP could ever get a green light.
ps: consider what you need for even semi-decent voice processing and the 66mhz cpu is already occupied
The same thing cannot be said on the 330 mhz one.