According to IGN, the next incarnation of the PSP is on its way. And it's taking a few design cues from the iPhone. (Their words, really!) UPDATE: Close Sony Source Denies with Sass
IGN has learned from several credible sources that the PSP 2 is indeed on the horizon, and will be packing multi-touch technology. According to our sources, the PSP 2 will feature a widescreen multi-touch interface comparable to that of the iPhone for both in-game control and menu navigation.
The point of the touchscreen controlling in-game features is a big one, signaling that this is not the PSP-4000 we're talking about but a full-fledged PSP2. (Hardware revisions that will wildly affect gameplay are reserved for new platforms.) It's also fairly believable since Sony put the option into a recent customer poll.
In case I need to address the point, yes, that photo is just a concept.
UPDATE from MCV source close to Sony (we're guessing external PR?): "Clearly, being a quiet time of year, many, what we thought to be credible websites, are making up stories about PSP2, and how it allows you to teleport across the globe, travel through time, and will be powered by the horns of baby rhinoceroses." Harsh!