Personally, I think PSP2 will probably come out in Q4 2009. Where do you think Sony will take PSP2? I think if they just carry on from PSP, it will have XBOX level graphics, retail at $250 or so, have games that cost $30-50, Look amazing, and have good integrated media feautres.

Now, I personally think thats a somewhat bad strategy. I think PSP2 should have PS2 level graphics. The PSP2 should probably start at around $150-200, so it isn't unaffordable (for a portable) at first. Also, medi feautres should still be in the portable, and should be really really easy to use. Also, I think it would be cool if people who have a PS3 could insert their PS2 disk into the PS3, then download the PS2 game they already own to their PSP2 permanently and for free. Also I think camera and phone acessories would help. And Sony should drop lots of cash to get original and PSP exclusive IP's out early (loco roco, joan d'arc, ect)

And of course, PSP2 should be backwards compatible.  

What do you guys think Sony should do with its PSP brand? 

Here's some things it might come with out of the box

• Rumble
• Sixaxis tilt functions
• Touch screen
• Possible cellphone version
• TV outs
• Mid generation PS2 graphics
• iTunes like download service
• Built in harddrive
• 2 analog sticks
• It will be around 300-350 range
• side laser cannons

 can we get some GOW PSP vs GOW2 comparison screens up in here??

 it is, PSP has stronger hardware.

 @Hus - it will be an olcd, an oled would be an organic light source, wouldnt matter if it had an oled or not really. 

ps2>psp graphic

psp lcd hd screen>ps2 with sd tv

My guess is Sony will try to be ahead of the next Nintendo handheld (like Microsoft did with the 360), but I hope they won't rush things. Sadly enough, they won't be able to hype the PSP2 as they did with the PSP. So dev recourses will go more to the next 'DS'.
But, Sony will have more experience in the handheld market, so no one knows what will happen.

PSP2
Relaes Date October 2010
Price: PSP PHONE $399
PSP Classic $299

CPU - Cell Micro @ 1.2GHz (1PPU 512MB cache, 4SPE's 256MB SRAM each)
GPU - Nvidia/Sony Custom Mobile GPU
RAM - 128MB XDR @ 3.2GHz
128MB GDDR4 @ 700MHz

Hardware
-Built in 20GB HDD
-Gyroscope
-BlueTooth 2.0
-Wifi
-4.3 OLED 1280x720 120Hz (Touch screen in phone)
-Memory Stick slot
-USB Mini
-TV out upto 1080p for video, games at 720P (everything can be upscaled with PS3)
-Microphone
-Identical controls w/ new additions being shift for L2/R2 and second Analog nub
-Touch Sense Vibration from Immersion

Phone Specific
-Cell Phone Chip
-3.2 Megapixel
-GPS

Software
-XMB 2.0 (everything from PSP plus)
-New Section Called create
+Image/Video editor
+Word Proccessor (Talk and Type technology)
+Game create software
-Complete integration with Home (same experiance as PS3)
-PSN (Store, Friends, wifi chat with other PSP users, cross game invites, etc..)
note - this feature will be availible on PSP in the near future
-Media download service (Itunes biggest competitor)
note - this feature will be available for PSP in near future
-Remote Play 2.0 (complete comunication with PS3, no feature loss, everything goes)


That is what I would want from the new PSP. I was thinking about this just last night and IMO going completely touch screen in games is a bad idea. You just cannot get the same feel for the game with toughing a fake button as opposed tio a real one. So I think that Dpads, and face buttons are a must. To me motion is a much more important part of gaming so I think it is a must for the new PSP. The last thing on the games side is they must drop the UMD. All games need to be via the internet or on memory stick. The UMD drive was the worst move Sony made on the PSP. It takes up to much space, battery life, and time. By then they will be able to run games off of Memory stick with 8+GB of space for a very cheap price, and downloading them would be the best way to go.

As for the PSP as an overall device, it must go directly after the IPOD. They have got to show that it is a Game system that can give you all of the features of the POD for a lower cost. Sony has to get a download service up that can get a name with as much power as Itunes. If this does not happen It will be game over for the next PSP. One Last thing: I forgot to post this because it should be obvious, but aparently Sony has not been that smart. They have to make more first party support for the PSP. That also has to be more than just PS3 port downs. If the PSP2 can get its own identity in games, it will be way better off than the PSP, which I have no idea what it is supposed to be in games. If we have another generation of half hearted rip off games on the next PSP Sony's handheld name will be tarnished.

Look at sales and think about what 3rd party devs will do.

Higest selling handheld 3rd party game is on the PSP not the DS.