"Surely, Sony can't expect us to buy all of our old games again in digital form, so they must be considering various options to placate those gamers with a big pile of UMDs."

Why not? I purchased LP records, and then bought some of the same records as CD's. If Sony gives users the ability to convert their UMD's to digital copies, that would be an extremely generous offer. Not to mention the fact that they would have to get all of the third parties on board.

Okay, let's look at it this way.

How do people who own a Nintendo DSi play GBA games? How do people with a Sega Genesis play their games? How do people with a GameCube play their games?

People, it's an alternative, not a replacement. If you own UMD games, you more than likely are going to need to keep your old PSP. But, the PSPGo is an alternative for those who want a smaller, more portable device.

That's all!

If you MUST HAVE your UMD game on your new PSPGo instead of your old PSP, then you'll more than likely need to buy the game again. Perhaps Sony will create some method for buying a discounted version of the game digitally if you own the UMD, but don't expect anything else since it would set a precedent for getting an extra digital copy of a game whenever you buy a UMD game.

If used games weren't so popular at places like Gamestop (who made more than 50% of its revenue off Used Games last year), the PSP Go wouldn't exist. So really, consumers only have themselves to blame.

Secondly, the PSP 3000 and UMD games will still be available. The PSP 3000 also has the ability to play games off the Memory Stick and download them off of PSN. Both the original PSP models and PSP Go have almost the exact same capabilities.

PSP Go has bluetooth and built-in storage, while PSP has UMD functionality.

I was actually thinking about a mail-in system as I opened the article, the UMD drive would be a disaster as the article says kids would take their UMD's to school and have rip-fests. An expensive option would be to have kiosk's in shops like a cash machine, you insert your UMD and it gives you a coupon to redeem on the PSN store. The UMD then falls into a bin and is retained by the machine and the boxes sent back to Sony. The shops take a cut of the 'transfer' from physical to digital medium to keep them happy. Or just simply a PC with a USB drive in a store that you take your games in, they take the UMD, check it works like they would if you were trading in and then the software on the shops PC logs in to Sony's referral system and gives them a code to give to you. The drive then damages by laser or dropping a head onto the disc making it unreadable so you or the shop can't pass it on. Less expensive than a standalone kiosk and the shop still takes a cut from the transfer.

Everyone knows that no matter what choice is made by sony someone will either have a problem with it or lead to piracy, The best thing they should do is add a tier to the psn where you pay 60-100 dollars a year.

If you just own a pspgo it would include the following:

1.Downloads for psp games that came out Before Oct. 1 (Only 3 downloads per umd title)
2.Rentals of movies from the Psn Video store
3.Access to the App store that is for the pspgo. No fee for downloading the Apps.

If you own a ps3 it would include the previously mentioned (even if you don't own a psp or pspgo) as well as the following:

1.Rentals from the psn video store for the ps3 (Non-HD Formats only)
2.Automatic invites to betas, demo's, and free Premium themes (since no one buys the premium themes on psn anyway.)
3.Subscription to Qore magazine.

*But still keep psn free like it is now. So you give your users options and not forcing them to pay for access to the basic stuff (unlike like some other company)

I know it's not the best idea but if you guys wanna add to it by all means. It serves multiple purposes people with a psp go wanna get a ps3 to get the rest of the stuff that comes with there subscription and same goes for ps3 owners that dont have a pspgo. and it puts that other company in a bad position because they nickel and dime you on every piece of content in there store. Just my opinion.

yeah this a problem but only for people who already own a psp with umd drive and have a big collection of umd games or movies but as long you keep your old psp then your fine you don't have to buy the Go. I think Sony should have waited until the next Gen psp to do this because I think everybody tried of buying anew psp every year, and not being able to use your old psp games on your pspgo.Also this will hurt the videogame rental business like Gamefly and Blockbuster if all games go digital I hope Sony lets you rent games through the PSN.