"Following the PSP's launch in Japan on Sunday, there was much confusion about whether the PSP would have a split personality. The majority of reports said the device would allow region-free gaming but slap the usual geographic restrictions on premade audio and video content on its universal media discs. However, when consumers got their hands on copies of Ridge Racers, they noticed a big old Region 2 logo on the back. Luckily, GameSpot was on hand in Japan over the weekend for the PSP's launch. None other than Sony chief technology officer Masa Chatani told us that, "for now," the PSP will be region-free for gaming "because people who travel around the world may want to pick up games in different territories." Japanese Sony reps later confirmed to GameSpot that the premade audio and video discs for the device would be region encoded"
Not that I trust Gamespots rumor mill a whole lot as it's generally useless...but Sony isn't giving me a lot of faith when "Region 2" is marked on their games.