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I bought this for my son's christmas, he had previously had the older type psp but broke it from dropping it so many times, so opted for the extra insurance when i bought it. I purchased it from Game as a package, i got two movies and 3 games with it for £130 which was a good deal and the extra insurance cost £22 or therabouts which covers it for two years for accidental damage, which is a must if you are buying it for a younger child as it can be easily broken and expensive to repair.
The console itself definetely seems improved, it is lighter and not as bulky as the older type, screen is a good size and the features on it are good too, for example it has wifi capability, you can transfer music and videos to it from your pc, and you can also connect it to your tv and play it on the bigger screen. It has a memory card slot which the older one had as well, so you can increase the memory on it which you really need to do anyway for saving game data or if you want to download anything onto it like music as they only come with a 32mb memory card. My son uses a 512mb sd card which i think is enough for now, i actually used an old memory card from an old sony ericsson phone i had, so saved a bit of cash there.
The games available for it are good and there is a wide choice availale for the kids as well as adults for when dad wants a shot!, so are the movies. The picture and sound quality of it really are quite good for such a small console, it can almost double as a small portable dvd player, although it obviously doesn't play dvd's, the films available for it as umd are quite reasonable priced and average about £5- £8. The sound actually seems quite loud and if your son is playing it right beside you I would recommend you get headphones for it, which is another good feature. Handy for if they are using it to listen to music or watching a film on it.
The graphics quality is really good, just as good as watching tv to be honest just a smaller screen, but all in all I would say this is a good buy. I would shop around for deals and packages available as the price can vary quite alot between retailers. I would also say that getting aditional insurance would be a good idea too, as sometimes it is cheaper to replace it than repair it if it does inadvertantly break, and the manufacturers warranty does not cover accidental damage.