While the PSP isn’t exactly cleaning up house stateside, it sure has taken a hit in Japan. The game releases for that platform have pretty much slowed to a halt, leaving many analysts speculating the cause of the problems.

Michael Pachter of Wedbush Morgan has a chance to voice his opinion on the whole situation and it really makes a lot of sense. Pachter said that much of the reason that the PSP has failed over in Japan is because something had to give. Even though the PSP has received numerous tweaks, patches, and even new models, it still isn’t what gamers are use to.

Pachter said “Instructing the US to play catch-up with Microsoft on Xbox Live, step up its online game with Home, offer movie downloads and push the Blu-ray home theater initiative just to begin with. Something had to give. The company has been spreading itself too thin."

Can they make a comeback?