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PSPGo screams laboratory experiment to me. All signs point to this:

1) High cost so each unit sold would bring in a large profit
2) Digital Distribution - all monetary sales go directly to and through Sony (no more middlemen)
3) No marketing WHATSOEVER - Keep upfront costs as low as possible
4) No UMD - force pubs/devs to make digital distros as well if they want their product on the Go
5) Require everything works on the old PSPs as well.

I think the Go is an experiment for the next inline PSP2. They are trying to figure out what works and what does not, what the customers want and does not want, what the customer is willing to pay, and how willing customers will be to download ALL their content and much more.

The Go is like a Focus Group but instead of them paying you to give your input, they sell you an expensive piece of equipment and then you give them your input.