Originally Posted by
IGN
The presence of a Game folder on the Memory Stick, and the appearance of the folder under the Game section of the XMB interface suggests one thing: PSP will be able to play games directly off Memory Stick. Of course, we didn't actually have any game files in the directory to try this out, but it looks like SCE is planning something in the way of non-UMD game content for the PSP. Downloadable demos? Fully downloadable games? Homemade application support that allows the young generation to flex its budding creative muscle on the cutting edge of portable hardware? We'll have to wait for further clarification from SCE on the matter.