Not too many details now but it seems that a repacement is in the works.

"Dave Perry says PSP 2 is Real, Could Come by Fall
Acclaim CCO says prototypes of a UMD-free PSP successor already exist.
By Kris Pigna, 02/25/2009

Rumors of a successor to the PSP that'd eschew the handheld's propriety UMD format have swirled for a long time, and gained even more traction recently after Sony posted a job listing that mentioned an unreleased "new game hardware." Now, if Acclaim chief creative officer Dave Perry is to be believed, those rumors are just about confirmed: He says the PSP 2 is real, won't use UMDs, and could even be out as soon as this fall.
"I hear Sony FINALLY has the PSP 2. And thank goodness, they've removed the stupid battery-sucking UMD disc drive. I'm excited!" wrote Perry in both a Twitter message and on his FaceBook page. Clarifying his remark with Kotaku, Perry said, "I spoke to a developer who is working on [the PSP 2] right now. I know this developer is already working on it, so that means they have a prototype. That would sound like a fall release to me."

Although Sony has yet to officially announce anything concerning a PSP successor, it'd be surprising if Perry's information was completely off the mark. Theories about a PSP 2 that'd use memory sticks (or an internal hard drive) and focus on digital game downloads have been bandied for years, and with the original PSP in its fifth year of release, the timing would seem right.

But until Sony finally decides they're ready to show their cards, we really won't know what they're planning. Could a reveal, perhaps, be coming at E3?"

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PSP 2 Rumors Backed Up, Controls Detailed
System will reportedly be slightly wider than PSP-3000 screen when closed.
By Steve Watts, 03/02/2009

Another developer has stepped up to give credence to recent PSP 2 rumors, reports Eurogamer. An anonymous development source close to Sony claims that the system will contain a sliding screen that covers most of the controls. The system width will be slightly wider than the screen, but "significantly smaller" than the current PSP iterations due to the slide-screen. However, the source claims that the shoulder buttons will still be accessible in its closed state, so games that rely on them (like Loco Roco) will be playable. The report claims that Sony is working with developers to create more shoulder button-based games for the new device to take advantage of the functionality. The system in its closed state is also said to support media playback such as movies and music.
The sliding screen over the buttons and rumored removal of UMD would result in a much smaller system. If these rumors are true, though, it doesn't seem likely that the revamp would solve the most common complaint about the PSP, the single analog nub. If the system is real and as far in development as we've heard, we're likely to hear official word from Sony at E3 this year.


Well It's coming and there are some details to what it will be like. Please Rep+ for the information!