Update: Sony has confirmed to Shacknews that the streaming of PlayStation games to PSP over Remote Play was indeed part of yesterday's 2.10 PlayStation 3 firmware update.

"With the PS3 2.10 firmware update, many original PlayStation games can now be played via Remote Play on PSP when the discs are inserted in a PS3," said an SCEA rep. Also playable are any original PlayStation titles that have been downloaded from the PlayStation Store.

Original Story: The latest firmware updates for the PSP and PS3 enable the streaming and playing of all original PlayStation games on a PSP via the PlayStation 3's Remote Play functionality, Shacknews has confirmed.

Both downloaded PlayStation games stored on the PS3's hard drive and PlayStation game discs inserted into the system are now playable on a PSP from any location with wireless internet access.

Though lag is likely to be a slight problem with faster-paced and reflex-based titles, slower and more tactical efforts, such as role-playing and strategy games, are best-suited for streaming across the internet.

Allowing users to access certain PlayStation 3 media and titles through the internet, Remote Play has become increasingly full-featured as firmware updates have progressed. The feature was recently expanded to allow PSP owners the ability to power the PS3 on and off using the portable system.