The PSP has been under a lot of pressure lately, with the Nintendo DS seemingly moving into the driving seat and in the process gaining support from leading publishers such as EA. The PSP's higher retail price than the DS is one area in which the handheld is at a disadvantage and has lead to many price cut rumours.

However, a price cut isn't something SCEE boss David Reeves thinks is necessary:

"There are no current plans to cut the price of PSP before Christmas," Reeves told MCV. "You might see, as you do in the trade, value-adding offerings. In our minds it's doing very well and we're very happy with the performance. I think next year you'll see it go to a much higher level."

According to Reeves the recipe for success "is to get different people buying PSP. We want the people that don't have a PlayStation 2 but who do want a portable device."

While many people are focussing on the next-gen war that will take place this Christmas, the handheld battle will be just as keenly contested.