I for one see the PSP being very good competition for the DS if not knocking it out all together. It will NOT flop like that peice of crap N-Gage, for one it has the entire company of sony behind it, N-gage was nothing more than a cell phone with better games on it bot that impressive.
But as of now and ever my money is on the PSP.
128 MegaBytes of availible game space on the DS vs 1.8 GigaBytes of game space on the PSP, come on thats an easy one.
nin64 graphics on the DS vs PS2 graphics on the PSP hmm tough decision there...not
PSP might cost a bit more than the DS but you are also getting more, besides if you are so strapped for cash that it makes that much difference in your choice maybe you shouldnt be getting either one of them.
Look at them,



the DS looks like a foldable brick while the PSP looks like some sleek gadget from Starwars or something.
As of now the PSP will be released in spring 2005 the DS later this year, but late release dates dont mean a damn when you look at the console market, xbox and gc came out a whole year later.
The DS might have a little advantage at first being the well known portable company it is, but in the long run PSP will do much better it just has much more to offer and there is a signifigant gap in technology between them, once people fully realise this the DS may well be crushed as well as nintendo's monopoly in this area.
It would be interesting if Microsoft were to come out with a portable, though I doubt it to be any time soon.