We checked out a working demo version of Skype on the PSP at Sony's booth and are pleased to report that audio quality was pretty decent -- certainly comparable to what we experience when using Skype either on a PC or on the receiving end of one. The only caveat is a bit of lag time in the audio transmission, less than a second but enough to be noticeable. The interface is super simple -- just select the Skype icon and you can see your buddy list of who's online; select someone to ring them up. At the demo station the headset in use was just a regular PSP headset jury-rigged up to the video out jack via the remote control cable -- not something we'll see in production. Since third-party manufacturers will be free to make their own PSP Skype headsets, there should sooner or later be some range of options available for headsets to use according to taste.

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Ears-on with PSP Skype