Fortunately, updating your PSP's firmware is not difficult, though it can be a little confusing at first.
Keep in mind, however, that if your want to run homebrew programming, updating your firmware might not be the best choice.
Back up all your data on your memory stick as you will be formatting it. Select the option that reads Run program at PSP/GAME/RECOVERY/EBOOT. If those people are incapable of figuring that much out (how many actually mentioned which PSP model they had in the "WAAH" brigade?
If you have not downloaded the file from the "what you need step", download it and extract it using win rar.(oh yeah.....install winrar first) =P4. you will be prompted with a flash screen (recovery mode ,main menu)9. keep tapping "O" and you will be prompted with the default setup as you did when you first got your psp.12. I've been checking out a few "how-tos" before removing the custom firmware and the reason why there's complaints earlier than this posting because this article doesn't explain that this will only work with the original PSPs or the "PHATS" and that some people would rather have a waaah and blame the poster than try to find out it failed.
PBP in the folder PSP/GAME/UPDATE - it is important the the folder names are ALL CAPITAL LETTERS.
Then, with your PSP charged (and preferably still plugged in to avoid battery glitches), go to the games section, select Memory Stick and then select your update.
If you just want to run official software and games, though, updating is the best choice.
Completely shut down your psp by holding down the power button or removing the battery (make sure you are NOT going into sleep mode)8.Keeping your PSP's firmware up to date is important if you want to take advantage of all the neat features Sony has included.Many new game releases will also require you to have a certain firmware version to play on your system.An update to the PSP® system software was released on January 15th, 2015.You can use this update to upgrade your system software to version 6.61 (including 6.60).Then navigate to the PSP's game menu on the XMB menu and select update.