Yesterday, Joystiq reported news about a story in the newest PlayStation Magazine issue about a redesigned PSP in the works. The article said the new PSP would have 8GB of flash memory, be smaller and thinner and would have a built-in camera, but those super sleuths at Gamespot looked deeper into the article and say it isn't true.
Gamespot's Rumor Control argues nowhere in the article does it say the new PSP will have the internal memory, but only that Sony purchased the flash memory units. Also, they say a large portion of the article is speculative and includes such terms as "likely" and "if we retooled the PSP."
Gamespot's final verdict? Bogus.
Whatever the case may be, I think Sony needs to do something to counter Nintendo's DS Lite. Sony is getting slaughtered in Japan, but I'm still not sure if throwing some internal memory, a camera and making the system smaller is really what will make the system any more successful. I would go for the dual analog nubs, though.