Yes, theoretically I can see how this would work, but the lag would be HORRIBLE. The picture needs to be encoded, then sent out over wifi to the PSP, then decoded and displayed. I've never used Location Free, so I don't know how laggy it is, but I'm guessing at least five seconds. Could YOU play a game like that, because I know I couldn't.
ETA: Okay, I just watched the video, and you can actually see the (approximately) three second lag between him pressing the control and the action being displayed on the PSP. Hardly practical.
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