An anonymous reader writes "UK video game site C&VG has posted a story rumoring Sony's PlayStation Portable handheld game console will allow both music and games to be downloaded via the newly announced Sony Connect online download store. An industry source quoted in the article says: 'PSP is intended to be able to link up with Sony Connect to offer digital music for download, but the bigger deal is the plan to put PSP games up there for download eventually, too.' C&VG says this rumor, if true, shows 'Sony's alleged drive to ultimately cut-out retail and handle distribution of software itself' - we'll find out for sure next week at E3."
Elsewhere, GamePro/Famitsu interviews leading Japanese PSP developers
, with Atlus producer Hideyuki Yokoyama saying: "I expect downloads and fees to be the primary business model."