LOL... good ol CamFuBot... and Null, you are right.
As for Cyrax, I fail to see where making Psx is a mistake when they aren't even backing it all that hard and are selling it at a profit.

I mean, when you sell somthing for more than it's initially worth, you can't lose.
You predictions on the handheld race are quite interesting too.
The way I see it, you are giving Nintendo WAY too much credit in there ability to adapt to competition and you are under estimating how smart Sony is. I mean, before you could ever understand where I'm coming from, you must understand that Sony isn't stupid. They have sat in there offices and completly thought out the handheld war they are about to start with Nintendo, and they wouldn't have jumped in if they didn't believe they have a chance.
Right now Nintendo has a monopoly over the handheld market, and a bigger company with more money and argueably just as much fan support is finally going to step in and fight. You couldn't say that about any competiton to face Nintendo, Nintendo was always the bigger company and now the have become vunerable.
As for Nintendo stepping up and adapting to PSP... I can't see it happening. Nintendo hasn't even stepped to the plate and outright killed off Xbox, and they are showing no signs of changing. Not to mention Sony has access to more high selling game licences than Nintendo has now. Sony will be giving the "mature game" developers a place to shine instead of getting killed off by ports of 10 year old games.
I think it will be interesting... Nintendo's dominance in the handheld race now lies in the fact that they have no competition that can reasonably beat them in game quality, funding, or popularity. Sony, unlike Sega and Nokia, can match up with nintendo in all three.
As for Nintendo surviving... and the Ps3 thing... more details are Needed before I can make a call on that one. Allthough I think Ps3 is destined to win regardless of release. The only thing I can see hurting it is Microsoft though, because they appeal to the same audience MS making a jump out first could reasonably turn some Sony heads. As for Nintendo, if they release first, they become Dreamcast, if they release last, they become Gamecube, and if they release at the same time, Sony's hype will destroy them.
Nintendo needs 2 things to get back on top... one of which I can't see happening, and the other which can happen but isn't likely.
1) Nintendo despretly needs a
NEW big time killer App... and I'm not talking game quality alone. I'm talking 100% popularity. I dont' care if the game scores a 2/10 from every site in the world, they just need one that can sell on the level of Halo or GTA!
2) Nintendo needs to have a sizible advantage in raw hardware capibilities. I would say the difference between how Ps2 games look and how cube games look is big enough (but sadly MS stole most of the graphics whores). Next gen that will be an expensive and hard thing to do.... but they need somthig that can stand out to the average gamer in terms of hardware, like N64 had. (cept it doens't have to be to that extent)