WOW. Everybody here is saying that Sony did this and that...... not helping...... confusing..... NO. It's because the immediate moment the PSP was released, people hacked it and downloaded games illegally instead of buying them. Which is why there are the high hardware sales, yet low software sales.

The PSP will only be saved when it becomes un-hackable. Which I believe sony is trying with this new SKU. PSP-3000. Once that is made, other PSP's will slowly become old and stop working, so those who have hacked throughout the years have to buy a new un-hackable PSP and will have to buy games instead of other. OR, sony will release a new form of UMD that isn't rippable, so games can't be pirated.

Or maybe a complete hardware refresh to stop those pesky hackers would help too.

It's only a matter of time before Sony does something solid that helps the PSP. They need to before it's not fix-able.

EDIT: And the only reason why third parties aren't developing for the PSP is because they know that they will have 10x less sales than the illegally downloaded copies of their games. Which is why the chart shows the proof of this, high sales in the beginning, but when people started to illegally download, you see less and less games.

You people shouldn't be saying that Sony is the bad thing blah blah blah. NO, its the hackers who download hundreds of dollars in illegally downloaded games to, I don't know, be cool? save an extra buck here and there? Well I hope somethings done about them, since they are the reason why the PSP is spiraling downward. :|