That multi-kajillion unit selling Playstation Portable is back, baby. Our half-brothers over at Kotaku are reporting that many third party and other highly placed industry have confirmed that the PSP2 is coming, this year. The new, fake E3 is coming up soon and I'm no Sony marketing monkey, but that could be an excellent time for an announcement.
Some rumors about the PSP2 already being regurgitated are the inclusion of an even prettier screen, faster load times, improved buttons, internal flash memory (8GB?), touch screen, integrated camera and use of UMD.
Rumor: No Denying It, PSP2 Is Coming [Kotaku]