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Sony MSVR-A10 Memory Stick video player and recorder

Sony just announced the MSVR-A10 Memory Stick reader/recorder. That's it, nothing fancy here, just a $215 device which records MPEG-4/H.264 video at 320x240 directly to Memory Stick. Good enough for about 4 hours of PSP video from a 1GB Stick. Does this mean Sony's throwing in the towel on UMD? We doubt it, and for our money, we'd rather get the Neuros Recorder II, which does the same thing and more for about $60 less. But at least Sony's finally acknowledging that some people might actually prefer to put their own videos on the PSP, rather than going with the meager and overpriced collection of UMDs now available.