Nintendo is quickly gaining ground in the handheld market, due to the stunning success of the DS Lite. They still face fierce competition with Sony, but as far as growth goes they are outshining them by far. The DS Lite this week broke 10 million sales in Japan, 61 weeks after launch back in March of 2006. In comparison, it took the PS2 more than double that at 131 weeks to reach 10 million. This is another in a series of months in which the DS Lite has done very well, selling more units per month than competitors. Why the increased sales? Ample supply can't be the reason, as they continue to face shortages in various markets.
What's going to be Sony's response if this trend continues? The PS3 is certainly not their saving grace at the moment, but the PS2 is still doing amazingly well. Whether or not that's enough to ride out what Nintendo has remains to be seen.