BEHOLD NON-BELIEVERS! It is here!
After much rumour and speculation, Sony has unveiled the PSP2, dubbed the NGP. It's nothing like the *sarcastic fingers* "psphone".
Lets take a look!
The PSP2's name is NGP
Sony's codename for the PSP2 is NGP, which stands for Next Generation Portable.

The PSP2 specifications are out of this world
Being a mobile game developer, I KNOW that the world has evolved completely in terms of portable gaming since the original psp's launch. And only two days ago, being a fanboy and PS-fanatic, I was praying that PSP2 should do something that'll blow the competition out of the water. AND IT DOES! The PSP2 has a five-inch, 16 million colour 960x544 OLED touchscreen, twin cameras, twin speakers and a microphone. There are also twin analogue sticks and a ridiculously powerful quad-core processor based on the ARM Cortex A9. Expect four to five hours from the battery.
It's got twin sticks
The "biggest criticism" of the original PSP was that it had no second stick. Why is a second stick so important? If you're reading this, you already know it allows you to move your character with one stick while looking with the other.
The PSP2 specs include a touch-sensitive back
The NGP includes a touch-sensitive back so you can control the on-screen action without hiding it behind your fingers. The screen's multi-touch too. The combination of a touchy front and back is fascinating - Sony talks about it enabling "touch, grab, trace, push and pull hand movements."
You can see it the video I posted below.

The PSP2 specs include POWERVR graphics
The NGP doesn't just have that nifty quad-core processor: it's got a quad-core Imagination Technologies PowerVR graphics processor too. It's nothing like we have ever seen before.
The PSP2 specifications include GPS
Sony promises that the PSP2's built-in GPS will mean some interesting location-aware games via the PlayStation Network, and an application called Near will let you know if your friends are near you. The PSP2 also includes a three-axis gyroscope, three-axis accelerometer and three-axis electronic compass for handheld-waggling motion-controlled tomfoolery.

The PSP2 design looks a bit like a PSP
Sony calls the PSP2's shape Super Oval Design, which is one in the eye for anyone who expected mere Ordinary Oval Design. It looks quite like a PSP, but why change when it's perfect Or would you prefer banana joysticks? It'll be 13mm longer than the PSP-3000 at 182mm in length - that's big. With thickness of 18.6mm.

PSP2 games will support new cards + downloads
The NGP supports downloadable games and the device introduces yet another new format, "a small flash memory based card dedicated for NGP software titles". What Sony has said is that the games will be "PS3 quality" - We also got to see PS3-level Uncharted gameplay.
Trophies will be coming too
It seems that Sony's Trophies system from the PlayStation Network will also appear so you can score points wherever you play - even on your Android mobile....
The PSP2 will play Android games; Android will get PlayStation games
The newly announced PS Suite is fascinating: it'll bring PlayStation games to Android, and casual games from Android to the NGP. Could we also see games become cross-platform with the PS3?
The PSP2 will have a 3G connection (and Wi-Fi)
The NGP has all the connectivity options you could ask for: 802.11b/g/n Wi-Fi, Bluetooth 2.1+EDR, and 3G. That always-on connectivity means it's ideal for social games too - so much so that Sony's gone rabbit-ears crazy in the press release, promising 'infinite possibilities for users to "encounter", "connect", "discover", "share" and "play" with friends wherever they are.' Sony Computer Entertainment (SCE) says that every game title for NGP will be provided with a space called LiveArea where "users can share the fun and excitement with other players".
The PSP2 will have multiple version for market placement.
To cut on the cost the NGP will be launched with and without certain features respectively so that gamers can choose to get what they pay for. We hear Sony's planning multiple versions of the handheld, including a WiFi-only (without 3G) option. Expect multiple SKUs and price entry points, perhaps a WiFi-only model for less and a 3G alternative for more.
The PSP2 wont cost $1000
Sony has confirmed that NGP wont cost $1000 as rumored or anywhere near that price. In fact Sony Computer Entertainment president Shu Yoshida admits the device "won't be $599," by which he means it'll be less than $600. Sony's final word on the matter, for now, is that the NGP will be "affordable."


The PSP2 release date will be late 2011
Sony didn't pin point a release date. "NGP will arrive at the end of 2011", it says. It's going to be a sleepless year.
http://www.youtube.com/watch?v=X783tFkuyw4