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Ummm......it is more powerful than the PS2. The PS2 only had a GFX Synthesizer. Many GFX functions were done in software mode (not hardware) and any form of shading/mapping was emulated and very slow. The PSP on the other hand does have a full GPU. All functions that were emulated and done in software on the PS2 are now done in hardware. Thus making it faster and more powerful. Its kinda like when you run 3dmark03/05 and it does the CPU tests. Those would be just your CPU running GFX, while the normal tests are CPU and GPU and they look much better and run much faster. Even the CPU is 33Mhz faster in the PSP and it is the same type of CPU as the PS2.
sorry for my ignorance, i dont really care to much for handhelds even though the psp impresses me.