"For us, it's a matter of focusing on 'when', because if we chased after a mobile or handheld opportunity, we would not have the resources and ability to do things like... Project Natal. So we've chosen to focus on the living room experience from a hardware standpoint, if you will, but we're building a service in Live that will... will extend to other platforms. No question about it."

Platform-holder Sony is aggressively courting developers around the world to work on digitally distributed games for PSP in a bid to grow the software offer on its handheld... This latest move will see Sony take a step closer to addressing the march that Apple has stolen on its handheld platform with the iPhone, that lets developers sell pretty much whatever they want (pending Apple's approval) via the App Store.

According to Firemint (Flight Control and Real Racing) CEO Robert Murray that may not be enough - the PSP development kit still costs $1,500 USD even with the reduction. Apple meanwhile only levy a one-time $99 USD publishing fee, which Murray reckons will make the iPhone a more attractive platform to small studios.