But then again, They did say that they won't do away with UMD.
http://www.pocketgamer.co.uk/r/PSP/UMD/feature.asp?c=3530
Despite reports that retailers are cutting back on UMD movie stock, Koller remains optimistic. "The future of movies on UMD is great," he states, asserting that demand for the format is growing. "We saw a 35 per cent growth year-on-year from 2005 to 2006, which clearly demonstrates a growing interest by consumers for UMD movies."
Sony Computer Entertainment unleashes downloadable movies and other content onto PSP, it won't mean the end of UMD. "We'll never walk away from our base," says Koller. "Whether it's movies or game content, third parties have an incredible opportunity to utilize it."
"The future of UMD is bright," Koller proclaims.