DS Lite just came out and it's damn near at the PSP's total. The old DS still outsold it for the week and 06. They did about 150k combined to 34k for Sony just in 06. DS is close to 1 mil in 06 which will double PSP. Even worse is Nintendo is shipping another 700,000 DS Lites.
Combine this w/the UMD debacle and the PSP is has one foot in the grave.
As for software, Nintendo has 15 games in the top 30, PSP has 3.