Sony have put their balls on the line here, by claiming that the PSP2 is a high-end portable equivalent of the PS3. The games on the PSP2 are set to be a large step away from the current handheld games on Android and Apple devices.
Sony have come out and said to licensees that the PSP2 "is as powerful as the PlayStation 3." This is a bold statement and if Sony do make dreams come true, it's going to shake the handheld gaming upside down.
The company is set to reveal the first details on the PSP2 in Tokyo on January 27. This is an entire month before Nintendo launch the 3DS in Japan. Sony is making plans to reveal more details at GDC and E3 after the reveal on January 27. Sony is set to launch the PSP2 in Q4 2011, it will include a HD screen, twin-stick controls and possibly even phone functions - but it won't be it's main function as that's the job of the PlayStation Phone.