http://gear.ign.com/articles/772/772775p1.html
Sources Confirm PSP 2.0 On the Way
More pocket friendly model in development.
by Gerry Block
March 14, 2007 - General speculation and rumor has swirled around an upcoming PSP redesign for months, and today the news breaks that the handheld will indeed soon be reborn in a slimmer and handier incarnation. Ray Maguire, managing director of Sony Computer Entertainment UK, spoke at the launch of the PSP in Education initiative and confirmed the rumors.
According to Maguire, the redesigned PSP will be slimmer and more pocket friendly, but will retain the original model's screen size. No more details were made available, but speculation has long focused upon the potential for a built in 8GB ram-HDD and the possibility of an integrated camera and maybe GPS. Of course, the updated PSP will still compete with the cheap DS lite, which has led many to suspect that entirely new features will be few in the new model to save in production cost.
The original PSP was a rather impressive piece of technology when it originally launched, and still looks plenty sexy among other bits of stylish tech. A more pocket-able model will likely do a lot to move the PSP from an airplane and car ride device to a daily use gadget.