Sony says UMD is "critical to us this year and beyond"

Sony says that UMD is critical to business "this year and beyond," responding to rumors of an upcoming UMD-free PSP.

While not directly answering claims of the machine' reality made by Acclaim's David Perry, Sony's John Koller did say that digital download were the future for PSP.

"We are making a concerted effort for digital distribution," he said. "We've talked to developers about increasing their digital download content."

The company wants to continue to support retail outlets, so allowing publishers to choose either UMD or the PSN digital download service as a way of releasing games is still a ways off.

"There is a delay right now because we want to ensure retail is respected and have their day in the sun," Koller said.

"Retail has been concerned about the digital side of game purchases, but that conversation has changed in the past nine to 12 months."