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arsenicazure said:
considering that over 50% of the current PSP users probably dabble in some sort of piracy.. dropping the UMD might not only been a sensible approach, its might just be the necessary one.

Thats a good point. Although going the SD route would probably mean some serious DRM.  Getting rid of UMD drive means more battery life and quieter as well.  Of course this is all speculation and its not likely Sony is going to give any specs away this far from release.