Sony's PSP2 is currently being pitched - or hyped - as a "high-end portable equivalent" of the PS3. That's quite a bit of power in a handheld device, bringing to mind the Nintendo 3DS.
According to a source from Edge Magazine, comparing the two next generation portable devices will be "comparable to the difference which exists between PSP and DS."
Edge Magazine's source supposedly has had experience working with the PSP2 and confirms that Sony and other publisher reports are 'a perfectly reasonable description of the hardware's capabilities."
Sony's new handheld features dual analog sticks, a long sought for feature that many fans have been fighting for. It supposedly uses physical media as well, includes an HD screen and if it's as powerful as they say it is, 3D support isn't entirely out of the question.
The little bugger's due Q4 of this fiscal year, expect more news at GDC and E3 this year.
Source: Edge Magazine