The PlayStation Home equivalent for the PSP, PlayStation Room, has been scrapped according to Sony. The service was first announced at TGS 2009 last September, allowing users to interact with each other in a virtual world similar to PlayStation Home. The official site stating that all development of the service has been cancelled, bringing the closed beta to an end.
No reason was given, though Sony added that it would be using the feedback gained from the beta for future projects. The natural question to ask is whether its demise is linked to the performance of PSP or the performance of PlayStation Home?