Yeah, but it'd probably decrease PSP/Vita sales :P

dang....
while this is a great thing, its a bad thing for me.
i hate digital versions of games (ironically i own the Go), and i was fully planning on only buying the retail version.
now this price difference is going to make my decision very very hard.
hopefully amazon.com has prices very close to the digital, and its tax free.

Your right that it may decrease PSP sales, but seeing as psp sales are low already outside of Japan they make make the same or more in revenue as software sales would increase.

Sorry I meant only psp games, Vita games would remain Vita only.

Actually PSP dematerialized games cost 1000 to 1500 yens less on the Japanese PSN than in retail. But PSP games are hell a lot more expensive in Japan than in th west : 6000-7000 yens compared to 40€ in Europe. So the European 35€ dematerialized games (I don't know how much it is in America) are a real bargain!

If Vita games cost 10€/$ less it would be awesome but I rather expect something like 5€/$ difference and a reduced retail price to compete with 3DS. Difficult to say if it's really interesting though because it depends on how much memory you'll need to store games : the memory cards don't seem cheap...

Not intended

i doubt people download them, theres so many cheepos today who just buy their games play for a week then trade it back in

Oh. I thought you meant they weren't going to release Vita.

I Go game is a PSP game. Every PSP game in the store works on all models.