"I'm convinced and we're convinced that piracy has taken out a big chunk of our software sales on PSP," said Dille.
Stating that third-party developers were "just about ready to jump off the cliff and pull support for the platform" around 18 months ago, Dille explained that Sony has been "evangelizing" the platform since, in an attempt to pull in more original PSP projects outside of PlayStation 2 ports.
But with millions of piracy-capable PSPs still on the market, Dille admits that the "toothpaste is out of the tube."
"[Piracy is] not good for us, but it's not good for the development community," he said. "We can look at data from BitTorrent sites from the day Resistance: Retribution goes on sale and see how many copies are being downloaded illegally, and it's frankly sickening. We are spending a lot of time talking about how we can deal with that problem."