I would say is dependent on what Sony does, regarding a new PSP (or even a redesign of the current PSP). It's not like they're in dire need to stay ahead of the market in this case. They can dominate the handheld market without the 3DS for the time being.

Yep and they're probably thinking they can get one more big Christmas season out of the current DS models, which are likely cheaper to produce.

I remember hearing they were going to discount all existing DS/i systems shortly, and I hope they do so before Risky's Revenge hits.

Just after I posted that, Nintendo back pedaled and reiterated the "sometime between now and March 31" release timeframe, so either Reggie said something he wasn't supposed to or they're still trying to make the holiday.  Hmmm.

As for the DSi prices, they are going down in Japan (a look at the stagnant Japanese hardware charts should tell you why), but no U.S. price drops have been announced yet, though I'd expect our prices to come down once we get closer to the 3DS' release.