Pocket Gamer's sources are correct, we'll be seeing some shockingly low-priced downloadable titles coming to the PSP's next iteration, the PSP Go. Reportedly, games on the download-only handheld will be priced at "1, 2 and 5 Euros" per game (roughly 2, 4,and 10 dollars, depending on the exchange rate), apparently challenging Apple's App Store head-on. The piece unfortunately doesn't clarify if these will be existing UMD-based titles, PSN titles, or brand new stuff.
A few months back, rumors arose about the unveiling of an app store for the PSP Go at next week's Euro game convention, Gamescom. This report seems to corroborate the idea of an app store for the device and even posits that Sony is currently "sourcing iPhone developers to bring existing titles to PSN." We asked Sony for comment on the subject and will update this post when we hear more.
One thing's for sure: Sony has a whole mess of rumors on its hands and Gamescom would be a good place to put some of them to bed ... or bring them to fruition.