Sony is reportedly in talks with the movie industry to distribute movies on Sony Memory Stick Pro Duos special for the PSP.By the report that I read there will be four movies contained on a installation disc that comes with your memory stick purchase. You would then choose one of them and unlock them with a special unlock code provided.
This however is no indication that the UMD media is over and done with but it does show the ability of the memory stick media.
The only question now is how long until they put whole games on the memory sticks?
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