So PSP has undergone a small makeover...the newest version features a new slide out feature for the controls, a 3.8" screen, bluetooth and 16GB of memory. It's also supposedly 43% lighter in weight and loses it's UMD drive. How do you play the games or movies with now UMD you ask...well you can now basically download them to a flash memory drive directly from the PSN store (seems like manufacturing jobs will be lost). Interesting, peep the video too for more info.
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