Destructoid reports that Sony will continue to push developers away from physical media through the launch of a PSP App Store, with an announcement expected at gamescom in August.
Citing sources close to game development, Destructoid states that Sony is encouraging developers to create smaller, "non-retail" games and applications for the PSP. These smaller titles/apps (limited to 100MB) will be priced much lower than full-blown games - somewhere between $2-$6. Free apps will also be made available.
Games and Apps are expected to be available to consumers as early as Q4, 2009.