We have two sets of rumours for two different devices. On one hand there's the PlayStation Phone, which is believed to be a Sony Ericsson device capable of playing first generation PSP games and running on Android technology. On the other hand there's the PSP2, which is rumoured to have a huge "HD" screen and touch controls on the rear of the unit. Neither of the rumours have been confirmed, but Kotaku's got more fuel to light the fire.
According to the website, the PSP2 is going to be an absolute technical beast. They claim that the PSP2 is set to have 1GB of RAM, twice the amount of the XBOX 360 for goodness sake. For comparison's sake, the current PSP-3000 and PSPgo have 64MB of RAM, and the XBOX 360 has 512MB. The Nintendo 3DS is set to have 64MB of RAM.
In addition to the technical clout of the system, Kotaku also notes that the device will not support UMD. Apparently games will be stored on memory sticks, though the site claims Sony are yet to decide on a final solution.
Since the departure of Ken Kutaragi, and the the initial struggles of the PlayStation 3 at retail, many have wondered whether Sony will continue to push the technical envelope with their hardware. If these rumours turn out to be real, it may just be the answer we've been looking for...