It looks like (legally) downloadable PSP games could maybe, possibly be getting ever so slightly closer to reality, as a Sony-made ISO loader has reportedly been discovered in the latest firmware update for the handheld. The current speculation is that the loader, discovered by the prolific Dark_Alex, gives the handheld the ability to load encrypted ISO images off a memory stick, not just the demos and PS1 games the handheld's currently capable of playing. That would, of course, open up the possibility of Sony selling games sans-UMD, which has long been near the top of the wishlist for PSP owners and would-be PSP owners alike. Then again, it could be something entirely less exciting, so we'll just have to wait for Sony to play its hand.

[Via Joystiq]

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