First clean your laser lens. see if that works. next check to see if the laser is working by opening the umd door without a game, press down the umd lever at the bottom til it locks then press down the small black plastic lever on the left hand side approx 1cm down. the laser should light up and go in and out searching for the umd.
i'm afraid if this does not work, it may be time to buy a new laser!
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Try different games and see if the psp will play any of them. If it doesn't then take a can of air and gently blow some air into the slot where the games go. This will remove any dust or dirt that might be on the laser.
If the psp is playing some games but not others then the laser is going weak.
Either way if the PSP is not playing games or only recognizes some, then the laser needs to be replaced.
Hi! I incounter this problem as well even without UMD its still loading and even I disable auto-start UMD still same so I tried reflashing the software but still same problem so I discover the solution before you turn-on your PSP try to open your UMD cover you'll see it will load faster then close again the cover once you see the battery and clock icon... The problem that causing this is the switch inside the UMD possible its stock-up or spoiled already!
If memory serves (I lost my PSP while moving) the UMD menu only appears when a UMD is inserted and recognized. If a UMD is inserted but the menu does not come up then either the UMD is bad or the laser is defective.
Same with my PSP. My son accidentally broken a spring sensor for the UMD when you close the UMD cover of the PSP. That's why the drive doesn't recognize if there's a UMD.
Sony Service Center here in the Philippines doesn't have a replacement part for this.