A spokesperson for Sony has cooled growing speculation surrounding the next PSP system.

Reputable developer David Perry alleged last week that Sony is working on a successor to the PSP, and that the unit will forgo UMD compatibility.

A Sony spokesperson, however, has stated to news site Kotaku that the UMD business is "critical” to Sony “this year and beyond."

Though Sony's John Koller reaffirmed the firm's position on the UMD business, he also offered that the company is making a “concerted effort” for digital distribution. “We've talked to developers about increasing their digital download content,” he says.

Games for the PSP can either be distributed digitally or via UMDs, yet Koller attempted to dull fears that retail outlets would suffer from the rise of digital distribution: “Retail has been concerned about the digital side of game purchases, but that conversation has changed in the past nine to 12 months.”

Retail outlets in Japan and North America are now gaining revenue through selling PlayStation Network cards, though the service has yet to land in the UK.