Alright, last year we hear about a PSP 2.
At GDC, they say the idea was cancelled.
And now, only a week later, they say it's back again!
MAKE UP YOUR MIND!!
This time, it was confirmed by the managing director of Sony Computer Entertainment UK (Ray Maguire). The only details revealed about the new upcoming system is that it will be more "pocket friendly", but if that's the only change after all the hype, I don't think it'll help too much. Especially, with the rumors of its tentative capabilities.
Keep mind that, this may only confirm a PSP 2 for Europe, but as for everyone else, we might not see it at all.