The NGP is entering a brave new world where smartphones are increasingly powerful and popular sources of gaming. Ngmoco CEO Neil Young, in fact, doesn’t think Sony can win in this scenario.

I think they are hurt; I think they’re clearly hurt, said Young. I think PSP is done and the new [NGP] is dead on arrival. It’s really difficult to compete with an app store that has hundreds of thousands of applications and a wide range of options where the average price paid is around $1.20 and there are tens, if not hundreds of thousands of free applications that are really high quality. So I just don’t think Sony’s going to be able to compete with that.

Source: IndustryGamers