Another Way to Play PlayStation Portable

"Pssssssp! There is a new consumer electronics rage in town, and for once it doesn't come from Apple Computer. It is the PlayStation Portable, or PSP, handheld gaming device built by Sony (SNE:NYSE ADR - commentary - research)."

"One supplier that could prove a winner if PSPs prosper could be the small-cap U.S. company that provides its brains: chipmaker Mips Technologies The PSP contains two 32-bit MIPS R4000 chips; one is the CPU, while the other handles media-processing tasks. The company announced second-quarter results in January that showed a 45% increase in revenue; net income swelled to $3.5 million, or 8 cents a share, from $477,000 in the previous year. "

[TheStreet.com]

Think of it as the PortalPlayer for ipod. Half of MIPS current revs come from royalties from licensing.