The PSP launches and among its first buyers is the target audience of older teenagers up to young adults. Sooner or later PSP is bound to reach massmarket appeal. The design is stylish, the graphics are beyond anything in the handheld market and the pricing just right. Up to this point, I am pretty sure the younger crowd wouldn't care much about the PSP - afterall, they're all enjoying the DS at this stage. As soon as PSP reaches that massmarket appeal and becomes a new hip product, the younger audience will follow eventuelly. And by younger audience I'm not refering to little Joe that is 5 years old - I'm more talking about the 12 to 15 year olds that will want 'a cool gadget'. By pricing the PSP at sub $200, it's minimally more expensive than a DS and it will make it easier for the those younger buyers to get one. This is no different than the 12 year olds that buy their first hifi systems. I think at this stage, the DS will be very quickly 'out'. On the other hand though, I think the DS will sell regardless to its core audience because that market is younger and to those, the PSP wouldn't be suited. The way things will go though, I predict that Nintendo will loose a bit of its marketshare (how much is difficult to predict without actual GB market studies numbers), but that the whole handheld market will expand rapidly as the PSP gets bought by many console users that didn't buy into that market due to lack of a mature handheld yet.