Sony's no longer denying PSP's overwhelming piracy problem. SCEA's Peter Dille spoke to Gamasutra about revitalizing the manufacturer's handheld, and put emphasis on one of the greatest hurdles facing its business. "I'm convinced and we're convinced that piracy has taken out a big chunk of our software sales on PSP ... we need to do something to address this because it's criminal what's going on, quite frankly."

While Sony's bottom line is obviously affected, Dille reiterates that developers are also suffering from the piracy scene on PSP. "It's not good for us, but it's not good for the development community. We can look at data from BitTorrent sites from the day Resistance: Retribution goes on sale and see how many copies are being downloaded illegally, and it's frankly sickening. We are spending a lot of time talking about how we can deal with that problem."

Dille suggests the solution to their problem will come in a multi-faceted approach. Yes, Sony's legal department will get involved, but education is also key. Dille wants to emphasize how serious the matter is to the average PSP owner. "I think gamers, if they understood if this meant that a platform would go away, can we convince gamers to pay for their content?"

This article was originally published on Joystiq.

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