SCEE president David Reeves has admitted that while piracy on PSP "is a problem", it can fuel hardware sales.
The piracy and homebrew scene has thrived on PSP since hackers busted the console's protection software wide open just months after its 2004 release.
"There is a piracy problem on PSP," he said at the recent DevStation conference in London (MCV reports). "We know about it, we know how it's done.
"It sometimes fuels the growth of hardware sales, but on balance we are not happy about it," he said, while explaining that Sony will soon be introducing new measures to tackle piracy on the handheld.