Plus it just makes a hell of a lot more sense for a portable device to use internal memory for low res video.

UMD movie distribution was just a bad idea period that only became exemplified as soon as iPods with video functions were introduced.

Even as a form of game distribution, it was pretty far from being ideal as it is generally a bad idea for a low power portable device to use spinning optical media (power consumption, access times, additional moving parts, etc.). Plus the basic idea of carrying media for a portable device is essentially obsolete.

From what I've heard there are some PSP games out there on UMD that aren't available on PSN. And the games can be found cheaper in UMD format in stores. You can also resell PSP UMDs. But not PSP PSN downloads. Not to mention that if you are an existing PSP owner you can't transfer your old UMD games. So even though the PSP Go is now priced reasonably in this new sales, I still think the PSP-3000 (or PSP-2000 if you like homebrew) is the way to go.

If I wasn't 95% convinced they are going to reveal the PSP2 at E3, I might be interested.

I believe there are quite a few PSP games that aren't available on PSN. Don't care at about about resale value of games though; $40 games (as new release) are only worth a handful of bucks. 

The regular retail price of the Go will drop, most likely before the year is up. It pretty much has to if SCE is serious about moving more hardware units.

My guess would be $199. Not sure if that means they'll drop the price of the PSP-3000 to $149 or less, but who knows? One device is currently overpriced, the other is priced about right. 

For me, with CA shipping, it comes to ~$200 with tax (I think it's $195)........hrm.

Great deal, i just wish the psp go had more memory, any i think i might the MGS bundle instead. But great deal.

A PSP2 or PSP Smartphone announcement at E3 seems inevitable right now. The PSP is fading in North America software sales-wise. Thus far in 2010 PSP software sales in NA: 3,845,114. At around this point last year (April 18, 2009), 2009 NA software sales were 5,416,724 for the PSP. That's an almost 30% decrease. And then the 3DS is right around the corner. And Apple is eating their lunch (just like they did when the iPod crushed the Walkman brand) with iPhone OS games generating more revenue now than PSP software.

Looking at the sales data on vgchartz, I was surprised to see that 2009 was the PSP's peak year in North America in terms of software sales given the lack of killer apps (1 million+ sellers) in North America for 2009. And people were doomsdaying the PSP even before then. But things have been slowing down a lot in 2010. When a system is on a decline like that, I think it's safe to say that a new gen is going to arrive. A PSP-2000/PSP-3000 would interest me but I'm not gonna bite with all signs pointing to a PSP2 announcement coming soon.

At this point, buying any PSP, be it Go or 3000, is based upon the current line up of existing software, along with announced future titles in development. Anyone who buys one with the idea that it's going to continue to be SCE's handheld platform for years to come is only setting themselves up for the inevitable "but I just bought one" rant when the PSP2 is announced.

It's virtually a given that SCE will drop UMD as a form of game distribution with the next PSP, so the big question remains whether this PSP2 will be BC with digital distro PSP games.

It shouldn't be a tall order though from a technical standpoint unless the PSP2 uses a completely different hardware architecture. Plus with all the PSP games currently on PSN, it makes more sense for them to continue drawing sales from that existing library until there is a decent PSP2 game library.

Either way, the PSP will likely remain the first, only and last device to play UMD games.