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Developer Davee has released information on a PS Vita PSP HEN he is currently working on. A major improvement over Wololo's VHBL, is that this exploit can access the PS Vita's modified PSP kernel, which allows for better compatibility of homebrew.
You can read the information below to get a better understanding of this achievement.
Originally posted by another user
First thing first, huge thanks to Proxima and some1. They’ve provided key utilities and advice for this research. So, yeah, it was really only a matter of time till this kind of thing happened. Sony dont just emulate the userland process of a PSP game, they emulate the entire kernel albeit, a modified kernel. The PSP emu has limited access to hardware, with interfacing the hardware done via a Kermit module. Kermit is a old-timers transmission protocol, likely used to talk to the native Vita.
The PS Vita, is a nifty little device, and the PSP emulator is a good target to get a huge library of homebrew. Check out the video below for a demonstration of what can be achieved.
You can see, that it works! The benefit is that HEN can access the core of the kernel, allowing almost seamless compatibility. However, as you may know, VHBL cannot run Lamecraft. Nor can this HEN currently. Lamecraft uses the OSK interface which has been replaced with Vita’s OSK. It’s likely a software error in the PSP kernel from the arguements passed in the homebrew.
There is other things, and perhaps i’ll make a post for them another time, but for now, later.
-Davee
Also, be sure to take a look at the video where Davee is able to launch PRX Loader (a homebrew loader), which loads up an emulator as well as what looks like a PSP backup.
so in theory we will be able to play PSP iso's "pirated" on psvita
if so YAY , if not GAY cuz hell i've been waiting to play a psp game on vita but its not on Psn store and may never be crisis core final fantasy