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The new, feature-stripped PSP will launch later this year and Sony believes the budget handheld will be a big hit with younger gamers.

"You will see the audience skew younger," SCEE chief Jim Ryan told MCV. "At €99/£89 it will make a great Christmas gift. It's a device to play UMD games. It's all for the audience. If we are going to take PSP very young – teens and much younger – they are happy to just play the game. If taking Wi-Fi out is the price to pay, we're happy to. The €99 price tag is a real barrier that we've got under which will help us lift off."

In addition, Ryan believes a successful re-launch of the PSP will help the PS Vita in the future.

"PSone fans upgraded to PS2, and the first adopters of PS3 were PS2 owners. So the form factor might speak to that, but it happens regardless. PlayStation has an army of followers," he concluded.

Sony will support the budget £89 PSP with an expanded range of PSP Essentials available for only £9.99.

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