firmware PSP to 'dump' the data from a UMD to a memory stick is about
to trigger a PSP file-sharing explosion.
According to GamesRadar
the files are stored on the memory stick as raw ISO files. There is
currently no way of playing back such files, but hackers are hard at
work attempting to write a utility that does just that and a release
may be only days away.
If they succeed we will likely see a flood of illegally copied and distributed PSP games.
are, of course, several benefits to running games off a memory stick,
including improved battery life, so users of the hacks are likely to
defend themselves with the claim that they are just copying games for
their own use. Yeah right!
PSPs using the 1.5 firmware (so that's most of the US batch) can't take advantage of the dumping software.
From Sony PSP Review.