In Japan, said Yoshida, the PSP is still doing well. Many customers who might pick up a Vita are "also interested in playing PSP games that they might purchase before Vita comes out," he noted, adding that many such customers may not choose the (Vita compatible) digital versions.
Furthermore, digital PSP releases in the west are available for "a really reasonable price." He mentioned Final Fantasy Tactics as an example, which is a $10 download in the US (cheaper than the iOS release!). Yoshida states that PSP games are much more expensive in Japan, so paying between $5 and $10 for a digital copy in addition to the UMD is a better value. "But when the games are already sold at a lower price in the U.S.," he said, "we see less value in introducing that kind of system."
Sony PlayStation Portable PSP-2000