Take this for what you will, but PSPworld has it from an "anonymous source" that the next version of Sony's PSP (the PSP2, if you will, or perhaps it'll be the PSPtwo?) will feature a new video chat service via a tiny integrated camera which will allow users to stream live video to the PlayStation 3 via WiFi before linking up with that HUB PlayStation service. The off-the-shelf video camera is said to be located directly below the PSP's screen (where the logo is currently) and presumably of the Motion Eye variety already available in some Sony Ericsson phones and Vaio laptops. Oh, and that 8GB of NAND storage rumor -- not gonna happen according to this source. It'll still be NAND but of the 4GB variety instead. We should also see about 1/4-inch whittled off the current PSP choice of black, white, and silver. We're not in a position to vouch or validify any of these rumors, however, so if it doesn't happen, not our deal (but if it turns out to be true, you heard it here first -- hopefully)!

[Via TGDaily]

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PSP2 to get 4GB flash and live streaming digital camera?