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donbenniPSP:
+ Acts as a portable media device as well as a gaming machine. Looks better. Games look better generally. Wifi.
- Is fragile. I spent more time cleaning it than playing it. Wifi browsing is overrated. Game selection is just what you get on the PS2, but more expensive and not as good looking. Not as fun as the DS. Just like to reiterate, the games are rediculously expensive considering brand new PC games are coming in around a 1/4 to a 1/3 cheaper.
DS:
+ Innovative - the touch screen gaming is good. It's Fun. Build like a toy brick. Online gaming is apparent very fun, especially Mario Kart.
- Some games look really rubbish. A lot games are just N64 games, but more expensive. Worse game selection than the PSP. Build like a toy brick.
I myself own a DS, but I'll try not to make my statements biased. The PSP can go online with Wifi but I think without a keyboard to make the typing easier I doubt I'd go web browsing on it if I had one. I have MC3 Dub Edition on PS2 and can't stand being forced to use the controller to type up stuff(I don't have a compatible keyboard). The PSP is a media player, so, the DS can do that too. You just have to buy an app that plugs into the GBA port on the DS and get a memory stick which I think will be much cheaper than the one needed for a PSP. I know I know, you might say it's gonna look horrible, remember the DS wasn't even made for Mp3 or video playing. Just the fact that someone did make it possible makes it a plus in my book for the DS. I just don't know of how many could watch a video for too long on a DS screen. You mention that the DS games are more expensive than N64 games??? Then you are getting ganked at the register, and need to check wherever/whoever your sources are, unless your talking of import games(which is a whole 'nother story, and yes the DS is region free). They are less than $40 brand new, I don't know of one that has surpassed the $50 mark of a new N64 game back then. When I think of portable gaming I never thought of load times, until I heard of the PSP being disc based. I don't want to wait for a game to load while I'm out for a trip to the store or wherever with friends and when I arrive to where I'm at the level or race is just starting(I'm exaggerating some), it's that load times should be a no-no for portable gaming, making the DS perfect. When I look at the PSP game selection it bored me, just downgraded ports is all that comes to mind, but with the DS I see a lot more original games and interaction with the touch screen adding to gameplay(for some games).
But in the end I can't decide for someone what to buy but money seems to factor in for people too. For the money spent on a PSP you can get a DS with Mario Kart($150) and still pick up some more games. In regards to scratching the screens on the DS with the stylus, that means you need to be more careful with your system, or get a PSP