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I honestly don't believe so. More like a new PSP model (4000?), with Sony trying to get rid of the piracy, specially when there's a lot of big software coming next couple of years. If anything, that's actually a Playstation Phone and not another portable gaming machine only. PSPhone would make more sense and could share all these PSP games, having a huge catalog already avaible and a lot of new games coming.

And I agree with some of you talking about the PSP being a mini PS2, Sony should try more unique games for the system like Patapon and LocoRoco.