The creator of games ‘Earthworm Jim’ and ‘MDK’, Dave Perry, has claimed that the PSP2 shall not have a UMD drive.
Which means:
a) it is in development and
b) that the new PSP will be thinner and smaller
c) The PSP 2 may be cheaper as this will cut down on costs 
The downside will obviously be that your current PSP games wont work on it 
And while Sony may deny that any such thing is happening Mr Perry insists that’s he’s right.
Perry posted on his Twitter account the following:
John Koller is publically questioning my post about PSP 2. So I confirmed with Top PSP 2 developers. John, state that PSP 2 WILL have UMD.
The shoe-shine boys on the interweblogosphere reckon that Sony may out the PSP 2 at E3 in May.
Let us see…………..
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really really really awesome
Was about time!
Ive seen the rest of the designs but the most speculated one is this ugly mutt:
http://initialm.files.wordpress.com/2009/02/hot-psp-render.jpg
It looks like it was made for uncomfortable gaming and more of movie and picture viewing. Where are the left and right buttons?!?!?!
The one above looks great! it ticks the right boxes. touchscreen, slim, compact and basically lives up to its name: PORTABLE playstation. i ca easily slip this into my jeans pocket!!!
I cant wait till something sleak and compact like this design comes out.
Another problem that needs addressing is keyboard. Why promote skype, and go messenger when people cant even type fast enuff?! even mobile texting is faster!!!
but then again, with touchscreen, that problem might be addressed anyways cos u can easily tap out the words on the screen instead of scrolling through letters.
Personally, I dont think this psp would be any cheaper. Yes its losing out on UMD drive but the touchscreen would increase the price more, to about £150 at the very least!!