@probottpric said in Retropie installing games:

So should i now create a new folder named psp ?

No, if the folder doesn't exist, it means that you didn't install a PSP emulator - use the RetroPie Setup entry in EmulationStation to install the ppsspp emulator and the folder should appear automatically.

Take a look at the PSP emulator page to see what are the supported game extensions and what emulators are available.