The Sony PSP and Nintendo DS could be out-selling home consoles by 2011, according to new research from DFC Intelligence.
According to the firm, the overall handheld market is set to be worth over USD 10 billion by the end of 2007.
In the research paper The Market for Portable Videogames, analyst David Cole states: "The DS has the potential to be the best-selling interactive entertainment platform ever."
Cole also estimated that although the PSP is currently trailing sales of the DS, it's expected that Sony's handheld will also take a significant share of the market.
"Under the right scenario, by 2011 the combined installed base of the DS and PSP could exceed that for the Nintendo Wii, Sony PlayStation 3 and Microsoft Xbox 360," said Cole.
The report also suggests that opportunities exist for casual games publishers and those that make high-end PC titles in the RPG, MMO and turn-based strategy markets, to take advantage of growing handheld adoption.
DFC also revealed that some traditional console publishers, with the right franchise, have made over USD 100 million from a single PSP title.