This isn't a new one but the idea is always awesome.

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In android there's an app called MX Player,which can play videos with any resolution.(Even if the device's resolution is 480p, MX Player can play videos 720p,1080p without any lag or problem).

Isn't there any way to develop such homebrew in PSP. It would be awesome!!

Android is linux based and both Linux and PSP are written in C++

Kindly search on Google with "MX Player" if you don't know about it and the first link will do it.