Sony's attempt at the handheld market, previously dominated by Nintendo's many different cloned variations of the Gameboy and its new gimicky gameboy with a touchscreen known as the Nintendo DS
There is a fanboyism surrounding Nintendo's effect on the handheld market that has many people discriminating against the PSP. To be frank, the DS and the PSP CAN co-exist in peace as long as the masses understand this:
DS Users are like Pimps.
PSP Users are like badasses.
Where the DS is a handheld being held down by it's predominantly childish manufacturers, the PSP is a handheld for adult gamers. We're growing up, and unless Mario starts hitting stuff with a blunt object, we're moving on.
The PSP is better than it looks.