In an interview with VG247, Sony Computer Entertainment Europe president, CEO and CFO Andrew House admitted that the company underestimated PSP owners’ attachment to physical media (UMDs).
He also said that the "day all games go digital, like on iPhone, is hard to determine." His admission relates to the PSPgo, which eliminated support for PSP UMDs at launch and relied more heavily on digital downloads via the PlayStation Network.
"I think that’s really interesting, but I think the data capacity becomes a real factor there. [iPhone games] are small-scale, data-tiny experiences, and clearly Apple has proved that there’s an online marketplace for that. But when I look at the trend toward bigger, deeper, more intense experiences – certainly on home consoles – I think packaged media will be around for quite some time."
He also added that consumers have an attachment to the games they already own that the company underestimated. Of course the company could have simply listened to the chorus of voices complaining about the elimination of UMD support in the PSPgo long before the company launched the system..