The PSP outputs to TV but not much more than that let’s take this thought one step further, you have a base unit for the portable device that can be sold for a extra 50-80$ the base unit has a mix of digital protections on it to keep clones away, the base unit can use controllers from the main console unit or if you want to nickel and dime your consumers more you can have it use its own set of controllers the DS for instance can have a blank touch pad area on it and a deluxe version has a full blown touch screen for 20-30$ more.
There is a lot profit to be made here though with the digital times as they are how much longer until you can play the game on the home console then send it to the portable for on the go play?
Think about it with the aging demographics and cost it’s a sure win to fatten profits for your portable line up, its a no brainier but thats what the game industry is filled with....suits with no bwains..... .