Sony has been making some dumb moves lately, and I think this is another one.  Instead of making PSP the best mobile gaming platform for mature gamers, much like the PS3 audience, they've decided to directly compete with Nintendo DS.  http://www.industrygamers.com/news/psp-to-focus-on-younger-audience-says-sony/  The plan is now to push more childish games for a younger crowd, to try and win them away from the favourite handheld.
Unless Sony has some pocket hologram console ready to launch, they're going to lose badly to the Nintendo 3DS when it comes out soon.