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I have a memory card I have been using with my account. Is it possible to deactivate and format my memory card, and set it up for another PSN account?

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Yes, it is.

First, follow the deactivation steps to deactivate the account (this is optional and can be done in a PC later on, but it's quicker to do it in the console).
Then, go to Settings > Format > Reset the PS Vita System.
After the system is reset and formatted, you can set up another account on it.

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