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I have tought about the cost as well ...
Here's a few things;
1) The PSP, IMO, could have been more. I mean, look at all the stuff it does. I think are taking a hit so the word gets out and the console gets sold. Having the unit in the hands of the consumer is the best marketing.
2) In regards to the games, the $50 does seem a little steep, but if you think about it Sony could have charged an online subscription.
It's like someone said above, the PSP can feel like a money pit. In the long run I believe it'll be worth it.
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***PSP Games I'm Playing***
Tiger Woods
NES/SNES Games
***Xbox Games I'm Playing***
Oddworld: Stranger's Wrath
Madden NFL 06
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