[quote name='J7.']The gaming industry sells a lot less games than music companies sell CDs & the movie industry sells DVD's & Blurays. (Not $ sales, quantity of item sales).
The PSP has a great installed base. Publishers are not avoiding PSP because of how many PSP's have sold in relation to DS's. They are avoiding because PSP games DO NOT SELL. Je5us F'n Chr1st.
Piracy is bad on PC but a helluva lot more people own PC's than people do PSP's, DS's, or any console, and as I mentioned earlier there is no royalties to pay for PC games. PC games are also increasingly sold digitally. Not to mention that Civilization is a PC based series. Your words come from someone probably trying to justify using CFW or piracy on PSP, in order to lower your cognitive dissonance. Ruining everything for those who support the PSP by purchasing games for it. And I should not be angry when I am trying to keep PSP alive, paying money for games, when others who make more money than I do steal the

ing games...[/quote]
I fully understand that piracy is wrong on a moral level (and an economic one, it's just that I don't like to use it as a specter of doom every time something happens negatively to a product or platform.)
I also understand that installed base is not a good barometer of how well a game will do, either. Most of the time, we get high-expectation games flop miserably in spite of 10 billion users. (Not counting that not all 10 billion play games...)
If piracy ruins a platform it'll take a forensic analysis to determine the demise... (believe me, I used to own an Amiga... I fully believe that it suffered from entirely too many pirates per 100 users) So all I'm saying is we need to temper some of the pirate rhetoric or it'll become a self-fulfilling prophecy. In my tiny demographic of PSP owners I personally know, only 2 of the 10 (me and another friend) are avid gamers. The rest buy UMD movies, or rip their DVDs and play them off the memory card (with the occasional "Lumines" or "LocoRoco" game thrown in... but not NEARLY the volume of say you or I.)
And Syngamer's got a point when it comes to differentiating between portable and "desktop" (for lack of a better term.) In every genre, besides possibly sports, we see too many PSP titles as ports of PS2 games or retro bundles (which I do enjoy, but I suspect they're not a universally accepted genre), and there are fewer first-party titles or unique titles that focus on the very broad strengths of the PSP (which I will go on record as saying it's a wonderful machine. I love mine.)
Analyzing this, we can come to a couple of conclusions (piracy is among the larger group of them, but bear with me here) why devs aren't focusing on the little wonder.
1st, we can surmise that the original crop of mostly ports didn't do well based on sales of games. That, coupled with the multifunction capability of the platform has put a dent in title growth for the platform even before you count CFW. And since we know everything is a profit-driven exercise, focusing limited game company resources on a platfom that hasn't shown success (because of the ports) is a gamble only the big studios can handle.
2nd, if we consider the platform to be somewhat of an enigma in the portable game industry (it does way more than play games), we can see that this first foray into a multi-faceted platform future is going to be met with some confusion in the traditionalist sense of "game machine" mentality development houses. They can't figure out what makes it special yet, and it's going to take some time to get traction. When they do figure it out (Monster Hunter comes to mind) they have a hit.
Granted the 1st assumption is more depressing, but I think the 2nd one is more accurate. No one (not even Sony) really knows how to best position the PSP, having tried as a DS killer, then as a "multimedia" platform in your pocket. Having that schizophrenia from the actual builder of the console doesn't give a warm-fuzzy to 3rd party devs, no matter how many PSPs are in the wild. When they do, boy watch out... we'll see some serious dominance because it's no longer a matter of "what does it do for me" in the minds of potential buyers. (A tad optimistic, but hey... I love the little thing.)
So, you can see we've got a great deal of facets to deal with, and CFW is pretty low on the totem pole, influentially speaking.

At least in IMNSHO.