Firmware is the PSP's operating system, stored in internal flash memory. It controls hardware functions, system menus, game compatibility, and security features. You don't "install" firmware like a file—you update the existing system software.
PSP/GAME/UPDATE/EBOOT.PBP on Memory Stick → Game → Memory Stick → System UpdateFor most users in 2024: Stay on OFW 6.61 for legitimate UMD/PSN games. Pursue CFW only if you understand the technical requirements and accept the risks. The PSP homebrew scene remains active—explore psp-dev for modern development tools.