The kid was told that he has 2 choices.
(1) To play with it, or
(2) to rent to his classmates at $1 per day.
With the money earned, he can slowly save up to be able to afford a 2nd PSP.
By the time the kid got his 2nd PSP, do you still think he is keen to keep it to play? After all, with a second PSP, the kid can rent both of them out at $2 per day.
I thought that was one neat way to teach the kid his first lesson at entrepeneurship.