I think they will make PSP 4000 this year,since many great games is coming to it.
PSP2 might come on 2010..

PSP2 probably not for another 2 yrs. Not unless iphone makes some serious inroads into gaming/or the zune.

SONY will probably ditch UMD and go with cart next gen.With memory so cheap it wouldn't make sense to go otherwise. Apart from that and a better screen/second analogue stick/ better battery, more efficient processor/grphcs I dont see huge changes.. probably like a turbo PSP more than anything.

I'm guessing at the earliest we will see PSP2 in 2010. They'll probably add a second analog stick and just overall improvements to its specs.

If there's a new handheld device from Sony, I would think games would be 'one of many functions', instead of calling it a handheld gaming device. Sort of like an iPod, I guess.

I mean, the PSP sold 15 million units of hardware last year, AND 15 million units of software.

With investors telling Sony that they need to start focusing on software more and hardware less. I really doubt we'll see any new hardware coming from Sony any time soon. We may in fact end up seeing Sony pull a Sega in the games world.