Well, the PS3 is a console while the PSP is a handheld. Most people don't expect a game as large as Oblivion on a handheld. The games are shorter because the PSP does not have the processing power of the PS3.
Its not because of processing power, its because of the storage constraints of the optical media (UMD). Right. Forgot that. Either way, you cannot compare the PSP to the PS3 since one is a console and the other is a handheld.
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