I think it should go the way of the iPod Touch, a media device with touch screen controls and sliding physical controls (with 2 analogs) and Android, what would make it diferent from the iPod Touch is that you will be able to play casual games and more robust experiencies that only Sony and their third partys can offer (God of War, LBP, Metal Gear, Heavy Rain, Ratchet, Sly Copper, Jak, Grand Turismo, etc).
Oh and of course it should be able to play PSP One games.







