While many pundits were certain that the high-priced and relatively featureless UMD movies were going to fail immediately as they were released, strong initial sales proved them wrong. Despite the UMD being the PSP's proprietary format, early UMD movie sales were strong and thus studios decided to churn out more and more titles. However, PSP owners are becoming less impressed with the UMD movie options as of late and the studios are feeling the decline in sales.

To counter the decline of sales, major studios are cutting their titles and adding more of the types of titles that seem to be selling well. First on the chopping block are horror and action, but the comedy genre (which seems to be doing well on the handheld) will be given greater attention. Also, Sony is planning to sell an adaptor that will play UMDs on TV.

Blame for the decline of sales seems to be falling on piracy and an abundance of available formats for movies.