Rumour: PSP 2 to be as powerful as PS3
Could be released in October 2011

Hot on the heels of yesterday’s rumour that the PSP 2 will be officially announced on the 27th January, MCV’s sources have told the site that the handheld will be as powerful as the PS3 and could be in our hands by the end of 2011. Sony has apparently told licensees that the PSP 2 is a high-end portable version of the PS3 and that it wants rich, in-depth content to match the hardware.
It's hoped that the promise of HD gaming will generate enough buzz in the coming months to counter the threat of the upcoming Nintendo 3DS and to differentiate itself from iOS and Android devices.
The device will take a ‘brick’ form, while other reported features include an HD screen and twin-stick control, one of the greatest criticisms of the original PSP. Phone functionality could be included, although this would not be a primary function.
Downloadable Content will be a staple of the PSP diet as apps and smaller games will be available through the PlayStation Network, but - intriguingly - the PSP 2 will feature a media format that permits retailers to sell content.
Sony is expected to outline its 2011 handheld strategy after Nintendo’s 3DS events in Amsterdam and New York, and will reveal more at GDC and E3. Publishers have been contacted about the launch, which is believed to be Q4 2011 and the device may be released as early as October.
While analyst Michael Pachter has suggested that the PSP 2 is ‘dead in the water’, Sony is certainly putting a lot of weight behind its new handheld if these latest rumours are to be believed.