Tom's Hardware has an in-depth analyses of the
possibility of hacking Sony PSP Games.
As reported a couple weeks ago, somebody was able to copy the game Wipeout to a Memory Stick in apparently play it from the stick.
Chris Gilbert outlines on Tom's Hardware that there are to many issues with effectively running a UMD game from a Memory stick that is not risk for Sony at this point.
More details on Tom's Hardware (Thanks: Yizhi S.).
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