This move gives PSP more of an edge in its continuing struggle against Apple's iPod and iTunes Store. Apple's iTunes Store offers a wide assortment of downloadable movies from big-name partners like Disney, but the iPod itself currently features only a 4:3 screen, making it less than ideal for movies. Sony's PSP will provide a better movie-watching experience, but users will be responsible for purchasing sufficient flash memory. With Microsoft also providing video content downloads via Zune and Xbox Live Marketplace, this battle is sure to be an interesting one.
[Via Joystiq]