Sony has said that it needs to revitalise the development community and educate studios that making PSP games is a profitable business.
Speaking to consumer site Pocket Gamer, the company admitted it has "probably suffered" due to a high reliance on third-party content which is no longer appearing on the PSP as regularly as previous years.
"We need to revitalise the developer community to get behind PSP," said Zeno Colaco, VP of publisher and developer relations for Sony Europe.
"One of the issues when you rely on a business model that relies on 25 per cent games from Sony and 75 per cent from other publishers is that if they start to refocus, you can't recover that space because you don't have the internal capacity, so we've probably suffered from that," he admitted.
Colaco said that SCEE is hoping to encourage developers to create quicker, cheaper games for the PSP – a similar model to DS titles – as Sony continues to push the handheld in different directions.
"Our sales for PSP is over 37 million units, which is huge, particularly when you take into account the level of third-party sales there are for PSP compared to DS.
"So from my perspective, what's important is we continue to tell publishers and developers that there's an opportunity to make money on PSP, which is something that will become apparent over the next two years as the network services are developed," said Colaco.
He also stated that with support of the PlayStation 3 and the PlayStation Network, the company hopes the handheld will enjoy a ten-year lifecycle.
"We definitely have the ambition for it to feature very strongly in the future, both on its own and also complimentary to PlayStation Network environment and the PS3."