PSP2 will be 'dead on arrival' - Pachter

"Handhelds are in trouble," says analyst

It may not have been officially announced yet, but Wedbush analyst Michael Pachter has written off the PSP2's chances of reviving Sony's handheld business.

"I think the PSP was dead on arrival and I think the PSP2 is going to be dead on arrival," he said on his Pach Attack show (via MCV).

Pachter's concerned not just about the PSP business, but the handheld market overall.


"We're approaching saturation in the handheld market," he said. "We're starting to see DS hardware sales crack, the iPod Touch is cutting into the handheld market. It looks to me like young kids are just as happy playing with the iPod Touch.

"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.

"After the 3DS has had its little rush I think the handhelds will continue to decline."

Last month, God of War PSP developer Ready At Dawn suggested Sony's handheld was "doomed from the beginning".

While it has yet to be officially announced, the PSP2 exists and EA has had access to it - according to the publisher's senior vice president Patrick Soderlund.