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I thought Sony had already targeted the DD demographic with the normal PSP, doesn't that allow you to download games to the memory stick aswell as the option to purchase the UMD.
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I don't remember the exact timeline, but I believe PSN content, in regards to full game downloads, was pretty barren until the release of the PSPGo. So, if I'm not mistaken, Sony didn't full-on attempt to reach the DD market before the PSPGo's release. I mean, if you look at the PSPGo's build, the device is very specifically meant for DD: It's small, has a good amount of onboard memory, and of course, lacks any moving parts through the exclusion of an optical drive.
And if you look beneath the surface, I believe that Sony also wants to squeeze-out used game sales and positioned the PSPGo as a testing ground to gauge consumers' reaction to a. . .
DD only model. But alas, I will refrain from going further into that issue.
In any case, Sony would've been foolish not to let everyone access the PSN, regardless of the model PSP they owned. In addition to content consumers would normally buy off the PSN, Sony also makes money selling memory sticks too, you know.