The headline feature of the PSP2 is a touch-sensitive control system, according to reports.
Publishers are apparently being given demonstrations of the PSP2 with several first-party games and a complete business model.
Nameless development sources close to Eurogamer have said that the screen is "rich and detailed" but the stand-out feature is a touch sensitive area "behind the screen".
"Behind the screen" suggests to us the touch sensitive tech will be beneath the display, making the screen itself nice and touchable.
Others, however, have interpreted it to mean that the new controls will be on the back of the PSP2 itself. Sounds a bit awkward to us, but who knows...
Developer sources have also apparently had a punt at a release date for the new handheld with one suggesting an end-of-2011 launch and another saying we'll have to wait another couple of years at least.
Other speculation is pointing to a PlayStation phone as the next move in Sony's handheld ambitions. We're still firmly in the 'wait and see' stage, though.