I have togo read again and i will edit this post but i believe they already discussed how they will be distributing the games.
EDIT - Okay sorta wrong on my part all they said is digitally distributed they also brought up a new PSP with flash possibility and they confirmed a rumor that it will supoort flash 6 games.
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Originally Posted by Sony
In addition, Kutaragi announced that Sony is developing an emulator that will allow PSPs to play original PlayStation games. He said the PS games would be digitally distributed to PSPs, adding ammo to rumors that Sony is planning to distribute classic games much like Microsoft already does with the Xbox 360 and Nintendo will with the Revolution.
Since the PSP's built-in memory is limited, the digital-distribution announcement also seems to lend credence to the rumor that a second PSP with built-in flash memory is in the works, though Kutaragi did not confirm so explicitly.
Kutaragi concretely confirmed another rumor--that the PSP would play games made with version 6 of Macromedia Flash. He also said the handheld would support RSS feeds later this year.
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