If there is a PSP2 coming out, it will only be a lite version of what is already out.  Possibly with a better battery pack.

They will not be making any wholesale changes of the PSP for a good 2-3 years yet. 

Teaser ! ! !

http://www.pspfanboy.com/2007/04/25/free-god-of-war-chains-of-olympus-umd-demo/

ON YOUR KNEES ! ! 

Trailer is now released.

Chains of Olympus Trailer

Another small note.  Ready at Dawn Studio's, the company behind GOW PSP, have previously created Daxter for the PSP.  Daxter, since it's release has been given the tag of one of the best looking and animated PSP titles yet...if not the best looking one.

IGN have previously interviewed the company last month and asked a few questions about their development etc.  Here is an extract.

IGN: Daxter blew everybody away with the quality of the graphics and animation, and you said even at the time that Ready at Dawn could still pull even more from the system. Now that you have had more time with the system, can you give us some examples of just how much more you have been able to get out of the system?

RAD: Daxter was using about 50-60% of what the PSP is capable of and it was a conscious decision on our part to pull back a bit and stabilize the technology sooner so that the artists could get on with making the game. The new version of the engine which powers our current game, probably raises this number to about 80% and allows us to do even more advanced physic simulations like cloth or liquids as well as some rendering tricks people though were only 'next-gen' like bloom. You never really make it to 100% because you always find new ways of doing things better or faster.

This is very exciting news for how Chains of Olympus could look and feel.  I personally feel that Daxter looks amazing and the animation is awesome and with  RAD at the helm of a PSP verison of God of War, I think we could end up seeing an amazing game technically on our handhelds. 

It's a great game for psp !

Good lord, I could have mistaken that trailer with a PS2 game.