Those excited for the arrival of the PSP2 should be a little more wary, according to industry bods.

Wedbush analyst Michael Pachter has already dismissed the yet-to-be-announced (but-blatantly-obvious) sequel to Sony’s handheld console.

“I think the PSP was dead on arrival and I think the PSP2 is going to be dead on arrival,” he exclaimed on his Pach Attack webcast (courtesy of MCV).

He didn’t stop there either, blaming Apple for condemning the future of handheld consoles, with only Nintendo’s upcoming Nintendo 3DS offered a brief respite.

“We’re approaching saturation in the handheld market,” he revealed. “We’re starting to see DS hardware sales crack, the iPod Touch is cutting into the handheld market. It looks to me like young kids are just as happy playing with the iPod Touch.”

“The 3DS will prolong the handheld market for manufacturers, but ultimately I think handhelds are in trouble. What’s the difference if you play Tetris on an iPod Touch or on a DS? Well, you pay a buck on the iPod Touch and you pay $20 on the DS.

“After the 3DS has had its little rush I think the handhelds will continue to decline.”

While Apple’s all conquering handheld gaming devices have certainly made a sizeable dent on the market, we can’t help but feel that it’s a tad early to write off the next generation of consoles.