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after you modify . you can now play your games
You buy a MOD and hook it up to your computer and "Modify" the game.
You don't need to modify it, the PSP can save games to the memory stick normally, as well as download games to it from PSN.
GameCube games and games on VirtualConsole. You can modify Wii to play PSX games also and other on emulators.
Update to the latest firmware, then you can download and play games from the PSN.