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If it looks good (for the casuals) and gets some decent games/support it'll probably hit ninty fairly hard.
A Playstation .... 2!
*Shock*
It's new, that's the whole point.
It's like saying the orginal Gameboy wasn't backwards compatible with the NES, so it was crap. Think about it.
BanDai tried and failed (Miserably).
The gameboy is always going to be number one. Nearly everyone must have a GBA (or GBA SP) so no one may even bother to burn cash on it (except Sony fanboys). Worse still, if it doesn't have the ability to play old PSONE games, it'll lose all appeal altogether. Thats the way I see it.
It has 'Playstation' written on it, and that's good enough.
It will over take future Game Boys, and push Nintendo right down again. In fact, Microsoft will probably release one as well, then Nintendo will go out of business.
It'll never out-sell the GBA. It's just Sony's attempt at taking over the handheld market. All I can say is good luck.