The only way PSP could ever hope to compete with gba sp lay in two factors
and yeah, i know they've been said a thousand times.
1) Battery Life~ It in all cases MUST have a batterly life of over 15 hours. Estimating though, I've heard rumors of a mere 6 hour battery life, which isn't surprising when you look at all the needless unecessary features. And with a screen that big and graphics supposedly that good, theres no way it can last nearly as long as the gba does. Oh, and it must be rechargable.
2) Cost~ Heres one point we can almost be 100% sure of...its going to be too expensive. Like Nintendo has pointed out, sony is confining themselves to a very narrow demographic, the older mature gamer. And while there are a lot out there, even a working stiff would be reluctant to cough up aroun $300. People say the target price is from $150 to $500, and with these features, you think its going to be anywhere under $200? Doubt it. Sorry millions upon millions of kiddies. No psp for you...go play your sp's.
Of course there are many other factors but i see these two as the largest. If it IS targeting Ipod price, then it'll be one of the more expensive ones. The $150 dollar model JUST came out, and besides, thats a special cut back model.
By the way, that article from gamespy pissed me off like no other. Ign and Gamespy...together they form a huge pile of crap.