I'm not really a video game player, so my perspective on this is probably not very typical, but all in all, the PSP I got was a real disappointment for me. It's hard to find cheap and fun simple games that I can just pick up and play, the battery life is not great, the user interface is not real pleasant, the screen is pretty small for video games, the controller doesn't always react consistently, and the disk is constantly spinning even within a single game so there's a lot of waiting.
However, if I can read for at least a few hours a day on a PSP (which is probably the most I will have time to read now even on a day of heavy reading), and if the screen doesn't cause too much eye strain, it might be fun to read on the device. For true gamers that carry around a PSP, it might be really nice to be able to read on it. The screen has to be much better for reading than almost any phone.
But eventually, I'd like to see e-book reading as a default generic function included with any mobile electronic device with a screen. Just like cell phones always have an alarm clock and a camera now by default.
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