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I think 2 years ago there were news about sony asking nvidia to make a video card for them and that the deal costed more than the RSX for the ps3 deal.

I think that the new psp should come in about one and a half year around the end of 2009.I believe that this would be the perfect timing because flash storage will be cheaper,lcd manufacture will be better and cheaper(the might use led??),and of course chip manufacture will have moved from 90-65nm to 45nm ...