Sorry if there's a thread about this already, I hadn't seen one.

http://exophase.com/psp/source-psp-go-coming-this-fall-packs-internal-flash-nixes-umd-drive-11220.htm

According to a 1UP report, Sony will debut a revised edition of PSP hardware at this year’s E3 in June, dubbed the “PSP Go!” The moniker is presumably designed to fit alongside Sony’s Go! brand of hardware and software additions, such as the Go! Cam and Go! View.

The site’s source alleges that the PSP-4000, as it has been internally named until now, will pack a substantial amount of internal flash memory. While there is no word on exactly how much, either 8 or 16GB of space is being presumed. As previous rumors have strongly alluded to, as well as reports from industry vets in the know, this revision will also do away with the built-in UMD drive.

Considering we’ve already heard of retail-quality efforts like Patapon 2 and Fighter Fate/unlimited codes going digital, this is far from an outlandish prospect. It makes sense, especially since Sony is now putting a considerable amount of momentum behind the digital movement.

Also, sorry to dash hopes, but PSP Go! will not include a second analog stick if 1UP’s report is to believed. If there is a chance of it happening, you’re going to have to wait out for a true successor to the PSP. The hardware itself however is undergoing an aesthetic revamp — apparently similar to the compact mock-up pictured above — which depicts a top-front sliding screen with face buttons wedged firmly underneath.

Keep in mind this is still all unconfirmed, but if true, the new hardware should hit before the holiday season worldwide, possibly late October or early November here in the states. Again, an announcement is expected at E3 2009.

Erm...blame CFW?

its possible. It would cut costs dramatically for Sony.

Seems likely. Pretty much every single insider/leaked report suggests the upcoming model to exclude UMDs. If nothing else, I think we can safely assume that is true.

It also makes sense with the name Go! because it kind of implies "on the go" or "ready to go" as in, no cords, no attachments, no extra stuff needed.

Sounds good... but what about CPU/GPU upgrades?

So wonder if they would make all current PSP games available for download?

There are a bunch of PSP RPGs I want to play in the future. I've purchased a few already, but I suppose I should just hold out if they're going to be absolutely useless in the next iteration of the system.

I like having physical representation of my games. Guess I gotta get over that. :|

This could work quite well! I have not long been on the PSP version of the PS Store and it is as easy to use and sleek as the PS3 version (which i was very happy to see) so the download of games and storing them on the internal flash memory and memory cards should be ok. I will miss having a Physical copy of the game but in exchange there will be little to no load times and potentially a much longer battery life (the main issue with the PSP as it is at the moment!