Sony today announced the PSP2 codenamed, Next Generation Portable (NPG). So far the following specs has been confirmed:
Quad core ARM Cortex A9 processor (clock speed not revealed)
5" OLED display with 960x544 resolution (16:9 aspect ratio)
Dual analogue sticks
Front multi-touch touchscreen
Rear multi-touch touchpad
3G and WiFi 802.11b/g/n
Six-axis gyroscope and accelerometer
Three-axis electronic compass for geolocation games and services
Front and back camera for Augmented/Alternative Reality Games (ARG)
The PSP2 NGP will not accept PSP UMDs. Instead Sony has unveiled a new form of flash memory card designed for the PSP2 NGP. Save files will be stored onto these cards, not unlike the methods employed by Nintendo for their portable consoles. The PSP2 NGP is said to be capable of crunching visuals almost on par to that of the PS3.
So far games from the Uncharted, Killzone, Hot Shots Golf, LittleBigPlanet, WipEout, Resistance, Call of Duty franchise has been announced for the PSP2 NGP.
No price has been given, but I think it won't be cheap. It is due out Q4 2011.