The report is a difficult one to assess, mainly because it's all about specific hardware components—nothing conceptual to scoff at, nothing strategic to question, no release dates to be skeptical about, just claims that the next PSP will carry a quad-core PPowerVR SGX543MP graphics chip, similar to (but more powerful than) the one found in the iPhone 3GS. This specific fact is plausible enough, but it also doesn't tell us much at all about the product it's said to be a part of, aside from obvious the fact that it'll be more powerful than the last PSP.

Anyway, that Sony is well under way on a PSP2 right now should be the major story here, but Eurogamer has nothing to say about the broader context of the device, other hardware specs, or its software. Set this one aside as a curiosity for now. [Eurogamer via Kotaku]

According to their source, the PSP will, in theory, look a lot like this mockup. Its touchscreen will slide to reveal a D-pad and a long-awaited two analog thumbsticks. And as mentioned before, UMD will be ditched for digital downloads. Pocket Gamer says the device is more like the iPhone than the last PSP and speculates that the iPhone and DSi may have accelerated Sony's plans for the future.

So in other words, every rumor we liked about the PSP has just been confirmed by another rumor, and Pocket Gamer assures us that pricing and availability will be announced this June at E3. We'll be there. [Pocket Gamer via Kotaku]

MTV Multiplayer: Ok. Just so we can have this as clear as we can get it: the rumor out there is that there's going to be a new PSP that doesn't use the UMD coming out by the end of the year. True or false?

Koller: Can't comment either way, but I will reiterate that the digital component is very important to us. That's all we can say at this point.

That's pretty soft talk for rumor smashing. It might be good to wait on that new PSP. [MTV]

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.

Perry may be loosely projecting a date according to the bit of information he has, but it seems to us that whether it's specifically a fall or winter 2009 release that Sony is aiming for, the PSP 2 is likely being prepped for contention in the next holiday season. [Kotaku and Image]

I hear Sony FINALLY has the PSP 2. And thank goodness, they've removed the stupid battery-sucking UMD disc drive. I'm excited!

No UMD wouldn't just mean better battery life. Its absence could allow for thinner form factors as well. Thinner sliding form factors, perhaps? [Kotaku]

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.

Of course, IGN's release dates of "coming soon" and "on the horizon" have widely varied connotations. To me, that could mean "next week" or "next decade." [IGN via Kotaku]

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!

While we haven't heard much yet, Eurogamer sources in the game publishing sector have confirmed that a PSP-4000 will be released in 2009 with a successor to the PSP platform coming sometime after. Sound vague? It is. But these sources also claim that PSP2 games are in the works right now. Needless to say, if that's actually the case, it's only a matter of time before more details leak.

(And it also might not be a bad time to remind the industry that Gizmodo will keep all tipsters anonymous.) [Eurogamer via Kotaku]

From SCEE President David Reeves:

No, there are currently no plans for a PSP2. I go to Tokyo quite a lot and no one has referred to it...We just launched the PSP-3000 so we are still focused on this generation of the platform.

Reeves goes on the discuss the platform's dichotic hardware success and software failure, admitting that even Sony's own development teams aren't creating titles for the PSP. Though, it's pretty hard to believe that not one person in all of Sony is doing ANYTHING toward a PSP2 development.

As much as I'd like to see a new PSP, the things I'd want (touchscreen, 3G media downloads and 100% remote play compatibility over a universal digital PS3/PSP library) are just outside the reach of anything currently affordable to consumers or implementable by Sony. [MCV via Kotaku]

Was the retailer demands the only reason for the price drop? Perhaps, but there have been a lot of PSP2 speculation lately. If you don't have a PSP, now may be the time to jump, especially with this system getting down to a more reasonable range, the possibilities with the device as a media player and especially because of some good game titles like Puzzle Quest, Ratchet & Clank and, of course, Lumines.

PSP Core Drops to $169 Tomorrow [Kotaku]

The PSP may be flopping right now, but if Sony can put the right spin on it, I could see a "PSP Lite" taking off. Especially if it still has the great looking screen, media support and cheaper (think competitive with the $129 DS Lite) price tag. You know, I am kind of excited to see what is going to happen with the PSP, which has a ton of potential. Take note, people. I don't get excited over Sony products very often. –Travis Hudson

PSP Something Happening Soon [1UP]

New PSP Confirmed [T3]

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. –Travis Hudson

Rumor: No Denying It, PSP2 Is Coming [Kotaku]

• All Metal & Ruggedized Rubber Build
• 200% Brighter Screen
• Dual Analog Controllers
• Visual Battery Display
• 8GB Flash Drive
• Wifi (a,b,g)
• Bluetooth V.2 (A2DP, AVRCP)
• Firmware 4.07

I'll go ahead and call BS on this, but maybe there could be some validity to the spec list. –Travis Hudson

PSP2 Codename Cobalt [1%]

Now speculation runs rampant across the blogosphere, anticipating the next Sony PSP, perhaps at CES 2007 in a couple of weeks. After all, Sony's portable gamer is ripe for a good upgrading.

Or, the graphic could have just been an example of how such a tiny disk packing so much data could be used, you know, hypothetically and all. At this point, it's anybody's guess. – Charlie White

PSP with 60 GB Samsung hard disk? (Google translated) [PSPwelt]

The report suggests that Sony will upgrade the built-in memory from 32MB to 8GB based on memory chip industry movement; will add a built-in Eye-Toy-like camera; and will retool the UMD drive into a slot-loading drive. Naturally, the upgraded PSP will be slimmer than its predecessor.

The larger memory is expected to be used for Sony's as-yet-to-materialize scheme for downloadable games and other content. Sony's not one to kiss and tell, so odds are it'll be a little while before any hard information on the next generation PSP is known. – Nicholas Deleon

Report: Next Generation PSP Coming in 2007 [Next Generation]

What do you want to see in the PSP2? Tell us in the comments! (if you need a comment account, email IwantToComment@gizmodo.com) – Richard Baguley

Sony's Mylo Killer:PSP2? [CNet]