If you're using *cough* firmware, please don't update.
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Sure does. March 18. Sony just said so. On the gaming side of things, it's a minor one, with only expanded "support for PlayStation Network titles" new to the table. On the internet radio side of things, though, it's a bonanza. Twenty new PSP Internet Radio players will be made available, and will now be categorised by things like genre, making your experience all the easier. The three of you who actually use internet radio on your PSP must be thrilled!
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Kotaku