http://gear.ign.com/articles/948/948234p1.html

While it's still just a rumor, I think it's more than likely true. Sony just keeps making new PSP's, and hoping one of them sticks. They've had slumping sales, and with each new iteration, they get less and less buyers. So what's next? They're going to make a sequel handheld.

I'll compare the specs to Nintendo, who also makes a lot of updated versions to their handhelds in general:

Nintendo:
DS: Basic version
DS Lite: Brighter screen, longer battery life, lighter, thinner.
DSi: 2 Cameras, SD card slots, DSi-Ware download channel, photo editing software, sound editor. A tiny bit thinner than DS Lite. Almost a negligible amount.
DSi XL: Screen is twice the size as previous versions. A little bit heavier, but more comfortable. Flipnote Studio and Flipnote Online, along with 2 other pieces of free software, and built-in memory storage if you can't afford an SD card.
3DS: TBA, but will have 3D interaction.

*All* DS's have built-in microphones for voice chat and voice interaction with games.

Medium: Tiny, thin game carts.

Sony:
PSP (PSP Phat) : Basic version.
PSP2000 (PSP-Thin) : Thinner, Better battery life.
PSP3000: Thinner, better battery life, and Skype access via microphone.
PSP-Go: Once again, thinner... better battery life. That's it. Oh, and it does have built in memory this time. 16GB. Not bad. But you're gonna be pissed at this: All your physical games? Yeah. Throw them out. They won't work for PSP-Go. That means, yes, you WILL have to purchase them AGAIN, but via download from the PSP shop. I bet you're raging by now.
PSP 2: Probably thinner and lighter, and probably can handle better graphics. It'll probably still be a flop though. Oh, and it's going to have a touch screen! How original! No other gaming company has done THAT in the past five years... Right...? *Points to Nintendo* Oh wait...

Medium: For the first 3 PSP iterations, it was UMD discs. Now, with the newer version, you have to purchase the games through the shop.

Not only has PSP's library been kind of lacking compared to Nintendo, but now Sony believes that they should release a new portable and do everything wrong (except for Skype in the PSP3000, which I think is freaking awesome) like making your UMD movies and games completely obsolete for their newest model.

Sony, when asked about being able to convert the UMD's into digital format to transfer to the PSP-GO, so people didn't have to re-buy all the movies and games they purchased they said, "Nah."

Discuss.

It get's really annoying that both these companies keep making updates to their systems. They're becoming more like computers and cell phones rather than game systems. All i really want my handheld game to do is play GAMES!!...and maybe music as long as I can play the music in the game (which you can't).

Zamiel no like touchscreen

I actually like my old PSP Phat the best out of all these updates. PSP Go is the most retarded idea Sony has ever had. DSi XL is as equally as stupid, or they should have had a bigger screen to begin with. Stupid greedy @#$#@$#%@

i will just stick with my hackable psp 2000

Actually, I have an old DS and just bought a DSi XL. It's a little steep as far as the price goes, but it's got awesome battery life, a DSi shop so you can buy certain games on the cheap, and the bigger screens don't really stretch out the games or warp them. Plus, with a bigger screen, it's easier to use touch controls and the calibration is a little more accurate.

I had a PSP but the lackluster library of games, and the fact that you have to hack them to unlock their full potential, was cumbersome and tedious in my opinion. I sold my PSP and got a DSi XL. I dunno, I love Sony's PS3, and their PS2, but their portables aren't for me. Lots of other people love them which is cool, but I like Nintendo's portable systems better.

iBOCK : it's not terribly fair to go the "Nintendo all ready did that route." By that extension, you could say Sony, Microsoft and Nintendo are lame for making video games because Atari made one of the first video games. My point is that there is only so much that a company can do. Now I do think it is kind of lame for Microsoft and Sony to come out with motion controllers, but if they provide better controls and graphics they should go for it.

Bobbynibbles : Well it's not terribly fair for companies to ride on the coattails of others. The "Me too!" attitude seems to be contagious lately. Oh, and the first game system wasn't Atari by the way. The first game system was created circa 50's~60's by Ralph Baer. So you could essentially use the "All video games are copies of Atari" but that's not true.

This has to do with how the games work, not the games themselves. Obviously if an idea is presented and then another company presents a variation of the original idea from the other company, it's going to seem like a cheap cop-out. Just sayin'.

iBOCK : But you do notice how I wrote "one of the first?" also from a competitive standpoint, unless there are competitors, things do not improve. That 3D TV coming out will not improve unless multiple companies make them. Products do not get better unless there is competition.

Bobbynibbles : You're absolutely right! I agree with that.