CES showed off a new application on the PSP that transforms it into a Wi-Fi remoter control that can handle networked audio streams from the Sony-brand audio receiver.

With the application, users can adjust settings, set up and oversee playlists, and browse audio libraries right on the PSP. The XMB drives the interface in the standard implementation.

They’re still beta-testing this, so the public release hasn’t necessarily been promised for any specific date. Other software has tried out the notion of a remote control on the PSP, but hopefully this one will take advantage of the collective knowledge to produce an application that’s ready for prime time. More news as it drops.