Overall, the Sony PSP is a great handheld system. The graphics are awesome, it has plenty of built in features, and it is a pretty easy transition to go from your PS2 to a PSP. However, my experience with it makes it pretty clear why the PSP, unlike the leading brand, is not for everyone.
In typical Sony fashion, the PSP is superior to any other handheld system in the areas of sound, graphics, features, and general gaming potential. The keyword here is potential. Unfortunately the system failed to live up to that potential in my mind.
The selection of games is really not that great. Yes, there are a few key titles that rock, like Jeanne D'arc and Final Fantasy. But for the most part the games are just remakes of old games with less features and downgraded graphics. Still, enough good games are out there to make the system worth it.
The other problem I had with the PSP was how it was built. Keep in mind this is the original model, and if you're out for a used model to save some money this is a key issue: the weight. This thing is heavy. It's so heavy that after about 30-40 minutes of gaming, your hands become numb. However, after a while you do get used to it. Or you could opt for the newer PSP slim.
Finally, it's important to note that the PSP is not well suited for all families. During the course of about three months, I had to replace six analog sticks and one analog stick assembly. Additionally since the PSP doesn't have a clam shell like some other systems, I found it was more prone to dings and scratches. If this is for your kids, just keep these things in mind.