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New PSP in 2006, with hard drive?

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Well, don't get too excited because this is just analyst speculation, here. But a report out of Piper Jaffray has Sony releasing a new version of the PSP in mid-2006 — one that includes an internal hard drive. A couple of reasons are given — one, that Sony wants to have something to counter a potential next-gen Game Boy from Nintendo, and two, that Sony wants to expand the multimedia capabilities of the console and go head to head with the iPod. The release could also act as a stopgap until the PS3 finally rolls out. Still, you gotta imagine Sony execs sweating under the collar about giving up that money-fleecing Memory Stick racket, so we'll be taking all this with that proverbial grain of salt.

This isn't the first time we're hearing of a PSP-HDD configuration. Joystiq covered the same speculation from a different analyst in February.

[Thanks, DaGreasyGuide]