Word on the street is that Sony will be announcing a proper sequel to the PSP in just a couple of weeks at E3. That's right—we're not talking something slimmer, more slidy-outy, or colorful. A true PSP2. UPDATE
The rumors are emanating from within several gaming publishers, and with E3 just around the corner in June all shall be revealed as to how Sony plans to tackle Nintendo's 3DS, also due for announcement at the show. [MCV via Kotaku]
UPDATE: Sony's latest financial results show a desperate need for a new PSP. From 14.1million PSP sales in 2008, to 9.9million in 2009? Ouch. Especially considering the PSP Go launched last year.