I seriously doubt the PSP is going to touch NES at all. You have to remember that NES started in the handheld gaming market, they pioneered it and they have the best thing going with it. I think consoles were made by NES to push the market along because they have always had the hanheld market sewed up to make up for any losses in other areas.

This gap is growing though and the Gameboy market, although a huge money maker can't carry a unit that is losing millions in production forever....they are smart and know when to cut and run.....the possibility however may be a new platform change once again for NES....hmmmm.