Sony to head off iPhone 3.0 at the pass by offering downloadable game rentals.
ME-sister site Develop has confirmed that developers were briefed about the service as far back as March, providing info and documents in closed-door meetings at GDC.

Reports suggesting the existence of a PSP rental service first surfaced on Joystiq, where the news site published a consumer questionnaire that had been sent out to various PSP owners.

The survey attempts to gauge consumer interest on various subscription options for a games-on-demand service.

Interesting, game subscriptions and in-game billing is something that will become possible when v3.0 of the iPhone OS is released next month.

Sony has of course made no official announcement about the service, nor has it made an official announcement about a UMD-less, PSN-focused successor to the PSP.

Rumours of a new digital PSP model to head off increasing competition from the likes of iPhone began in December last year, and have intensified since.