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A PSP2 won't come out until the PSP's sales have been in decline for a while, so I'd say either the 2010 or 2011 holiday season, most likely the latter.

A touch screen wouldn't be a bad idea, but what it really needs is a second analog stick(that's right, STICKS, not nubs), and built-in storage. The media for its games should be MSPDs and not UMDs. That would raise battery life, make the system less bulky, and allow them to launch games at lower prices. $40 is too much for a hand held game. If it's going to serve a multi-media device as well as a gaming device, then it needs to come with at least 4-8GB of built in flash memory. It should still support regular MSPDs in order to expand its storage capacity, and for this, it should have two MSPD slots, one for games, and one for MSPDs to expand storage capacity.



 

Consoles owned: Saturn, Dreamcast, PS1, PS2, PSP, DS, PS3