David Perry recently said that he has had alot of contact with Sony’s developers and knows the PSP 2 to be a reality. he says:
“I’ve been pounding on Sony for a long time to make the Playstation Portable relevant and not to let Apple stroll away with the portable game market,” he added: “Look at what Apple is doing now. Why are so many investors investing in Apple game development? Trying to pitch a PSP game to investors right now is brutal.”

the PSP 2 is said to be umd free and and fully backward compatible and may be availiable later in the year but no release has been confirmed