it is possible but it can only be a game specific function. You can't expect to play every game with a PSP, it simply dosent have enough buttons to replace a PS3 controller. Some games in the future will be capable but they'd have to be designed to take the PSP into account and have some conceptual reason to use it.
I've read int he past that the F1 game supposedly will have this feature but i've not yet looked into it. I dunno if the demo has some functionality for this purpose either.
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