From the Reg:
http://www.theregister.co.uk/content/68/33790.html
The device in the top right corner is the PSP Universal Media Disc (UMD), a DVD-like dual-layer medium offering 1.8GB of storage. UMD comes with DVD-style region coding and copy-protection mechanism based on the Advanced Encryption System (AES). Each disc has a unique ID number too.
I wonder how long it will be before someone hacks AES.