I do not believe hardware sales will be lackluster this Christmas. From all the complaints of the cost of the PS3, it seems as if no one will buy (I'm buying two though). There's only two million units being shipped globally on release day, but then there's the Wii. It will be a hot selling item and take many sales away from Sony. I believe people will still buy PSP's especially since GTA:VCS is coming out. People hear the talk of the PSP 2? Yeah, only if you are on forums all day. Most parents probably do not know of this and will buy PSP's regardlessly. If I didn't have a PSP and knew the PSP2 was coming soon, I would still buy a PSP for the homebrew and other functions.