Bottom line: nobody makes money off of carts. Ask any GBA developer how profitable it is as a platform - the short answer is, it's not. At all. All thanks to Nintendo and their archaic methods of manufacturing and distributing and the horribly outdated ROM cartridge format.
In comes Sony with the disc-based handheld to win the hearts of developers and bring a much-needed change to the current state of affairs -- does it sound familiar? It should. They're planning to do to Nintendo exactly what they did to them in 1995 -- and if Nintendo doesn't do something about it this time, they're going to get their asses handed to them yet again.
Nintendo tried to laugh this off at E3, but the truth is, they were collectively shitting their pants the moment the announcement was made.
The 'Playboy' project has been in the works for over three years (I've known about it for nearly as long, so this news obviously wasn't 'new' to the execs at Nintendo), but I still wonder if NCL have done anything to prepare for its eventual arrival. Somehow, I doubt they have.
Good for Sony. I hope they wipe the floor with Nintendo. It's time they got their heads out of their asses and actually started competing again.