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superchunk said:
That would be stupid.

There's a reason Nintendo hasn't put Gameboy era titles on VC and has distinctly different download options between DSi and Wii. You don't want to make your products obsolete. You want that Wii owner to go buy a DSi. Just as Sony should want PS3 owners to go buy PSPs.

You're assuming that Sony makes a lot of money from PSP hardware sales, and that's what drives them to sell PSPs and PSP software.

I think Sony makes most of its money, with PSP stuff, from PSP software sales -- this move increases the number of devices, in the field, capable of playing PSP games by over 50%.  

I think people typically buy handhelds to play games portably, not just to get their hands on must-have games.  Anyone who was going to purchase PSP hardware purely for the titles available on it, probably did so already.

If this rumor is true, its a great move.