Over at
realtechnews is
this article about how Sony is moving away from UMD's to a package deal involving 1-2gb USB storage disks with your choice of a limited selection of movies.
Realtechnews:
In typical Sony fashion, moving to the Memory Stick Duo as a movies release platform makes more sense, but the execution is convoluted and expensive. The 1GB version is $60 and the 2GB version $100, and you only get what look to be lame Sony Pictures releases (Hitch, S.W.A.T., The Grudge, or XXX: State of the Union??)- not much of a catalogue. To make matters worse, Sony steps down the resolution to 240x320 instead of the nicer 480x272 the PSP can do. Meanwhile, most people are simply converting DVDs to MPEG-4 and copy movies onto the PSP with a simple USB cable. Don’t expect this new move to change that.
Sony should just set up an iTunes style store for movies to allow transfer to their USB sticks or PSP directly. It might not be that successful but it'll be better than what they have right now.
I wonder if we can expect the same type of support of their Blu-Ray format.