The Nintendo DS is the most popular handheld gaming device in the world and it looks to hold that title with the release of the DSI. Did you think Sony was going to stand by and let this go unchecked? Nope. Here is what they had to say:

If Nintendo is really committed to reaching a broader, more diverse audience of gamers beyond the “kids” market that they’ve always engaged, there isn’t much new with the DSi to support that. Significant gamer demographic groups are being ignored, and there continues to be limited opportunities for games from external publishers to do well on the DSi. Compare that with the PSP platform, where we have many blockbuster franchises from our publishing partners launching this year, representing a wide variety of genres and targeting diverse demographics. Games such as Rock Band Unplugged from MTV Games, Assassin’s Creed from Ubisoft, Dissidia Final Fantasy from Square Enix, and Hannah Montana from Disney demonstrate the commitment that publishers have to the PSP. From our own first-party studios, we’re launching unique versions of LittleBigPlanet and MotorStorm, and we’re also planning a steady stream of downloadable games — both new titles and PSone classics — to add to the content that PSP owners can already purchase wirelessly through PlayStation Store.

The PSP is popular but is expensive. The UMD’s seem like a dated tech and there are not many must have titles for the PSP. If and when we see the PSP 2, I will hold judgment until that happens. People say MS has missed the mobile market, but I think that they stayed out of a battle that they could not win. Let’s wait and see what Nintendo has to say about this.