PSP Firmware 2.80 out now

Sony has released firmware version 2.80, which adds some new functionality, such as playing media files which are stored in folders.

You can now download video and image content using the RSS channels, playback AAC files with the 3pg extension, and you're also given the ability to play music, picture and video content that has been put into folders on the Memory Stick. There's a few other updates which you can read about over at YourPSP.com, where you will also find the update.

The update is also out now on the Japanese updates page, but so far has not been released for US gamers.