Graphics are a bit meh, but not too bad given the tiny screen size (still much smaller than PSP). Resolution's still much lower than Iphone 4 but nobody's gonna use it for internet browsing anyways, and it's not good to hold it too close to the eyes for gaming, after all. Let's see if 3D will be more than a gimmick. Nintendo for sure wants a repeat of Wii's success with a new fancy tech. Sony is working hard on making PSP2 available within 2011, so watch out Nintendo! Only if PSP2 could be just like the Ipad (the size, functionality, etc..) plus a webcam, 3D screen, and more! Let's see.. we'll be having a 12" 3D 1080p screen tablet/console that can play 3D blu-ray movies and games for $300 by 2012 (maybe by Microsoft or even Google)??