Nintendo DSi: How can Sony counter this new video game system?

With the release of the Nintendo DSi right around the corner, one of the obvious questions people are asking is: How are Sony going to counter the success that Nintendo’s handheld is going to achieve?

The DSi is scheduled for release on the 3rd and 5th April in Europe and the US. The handheld has already had huge success over the Sony PSP over in Japan, so what does Sony need to do to keep up with Nintendo when the DSi gets released over these shores.

An article by AssociatedContent has suggested some ideas and solutions that Sony could introduce to keep the handheld market interesting for the consumer. We have already heard news about a new PSP design coming in the future, but some concrete info from Sony would surely put the interest back in PSP owners. While theres plenty of talk about a PS3 price drop lately, what about a price drop for the PSP too? Retail price for the Nintendo DSi will be $169.99, the same price as the PSP at the moment.

There are a lot of ways in which Sony could put the ball back in their court, let us know your ideas on this.