I bet you the psp 2 will be more an iphone then a console, they will fight againts apple in the smart phone war using droids as an operating system

because it's not going to be for all android Phone's!

It may but I doubt it very much..by making Use of android, and having  their smartphone's only get Playstation software they make their smartphone unique.

just because they use Android does not mean they cannot have their software unique to their device.

plus they would still get access to the Android APP's store!

What I find far more amusing is that CNET is still talking about how Nintendo has to catch up to Apple.

http://reviews.cnet.com/8301-21539_7-20007814-10391702.html

(It has a photo series entitled 10 things NIntendo needs to fix before taking on Apple:

Actual quote from No. 9: "Most children want iPod Touches because they can do many things.")

It is as if the iPhone is being bought for gaming and the PSP DNE (does not exist).

Mike from Morgantown

Not even a rumored announcement and straight off the bat you're saying there's no significant improvement possible? Would you have guessed the next nintendo handheld would have 3D without glasses two years ago? Nevermind, don't answer. 

the point is msn.com is owned by microsoft. which is ironic showing the competition.

Well the 3DS is trully more then what I was expecting. If Sony wants to have any chance in the handheld market they need to seriously step up the game. Im starting to get worried, that they might just abandon the portable line altogether and only focus on the PS3 :|

PSP2 is DEFINITELY coming, if any you think SONY will give up after selling 60 Million with their first portable your definetely wrong and its laughable to think SONY won't have another handheld "nex-gen"

It won't be dead on arrival either....but I for sure won't be buying it, not after the disappointment that was the PSP in terms of games. There have to be drastic changes to the PSP formula and focus for me to even think about it.

On the other hand a PSP2 will still be successful, less than the PSP though.

they do not have to abandon the line all together..just keep support for the PSN downloadable game's for the PSP..no new hardware except for what's out there right now..you can still get your game's off of PSN, and move the NEW PSP's direction toward a PSP/ android OS phone hybrid.

The may have sold 60million but how profitable has the PSP been for them?

Personally I am expecting a hybrid phone to fight against apple. After all SE make great mobiles. Only issue atm is they are always one step behind apple. Xperia X10 should of been released sooner. Also Samsung have stepped up smart phones too, check out the new Galaxy S i9000.

Sony's biggest advantage was third party support; third parties threw their biggest handheld games on the PSP because they thought it would eclipse the DS the way the PSX and PS2 beat the N64 and Cube.  When that didn't pan out, third parties found themselves out in the cold; many of their fans bought a PSP, and din't want to see third parties move to the DS, while the early third party DS games were underwhelming and aliened people who bought the DS. 

By shortchanging the DS early, they got screwed in the long run when the DS took off; and then they repeated their performance on the Wii.  After missing the boat twice, third parties do not want to let another Nintendo system slip past them again, and are backing the 3DS early and heavily.  Without the advantage of exclusive third party support, there is little chance the PSP2 could compete effectively against the 3DS.

At this point, I imagine that Sony is developing a PSP2, but if third parties are cold to it because they are supporting the 3DS, Sony may decide it's a lost cause and cancel it before announcing it.