Sony's been hyping up PlayStation 3's connectivity with the PSP. Game Watch took this picture of the PS3's XMB, revealing a happy PSP icon in the Network menu called "Remote Play". As previously stated, you'll be able to stream data onto your PSP from your PS3, such as video and game content. For example, if you want to throw one of the most expensive console multiplayer games ever, you could wirelessly connect four PSPs to your PSP and start playing (that's $1400 of hardware, baby! Of course, this is just speculation, and will most likely never happen). PSP-Vault also goes into some speculation, hoping for the ability to stream Blu-Ray movies to the PSP, and UMD movies to the PS3. The possibilties are endless, and we hope that Sony takes advantage of that huge potential.
PSP fans better start saving up: and they better save up a lot. The $500 PS3 does not feature wi-fi capabilties, so for PSP-PS3 connectivity to be fully realized, you'll have to go all the way.