The PSP has had a good run, but Sony is ready to move onto the next generation according to EuroGamer. The PSP will receive one more refresh with the PSP-4000 in late '09. It's PSP2 after that. Details are not available about either the updated PSP or the successor as of yet. The last update of the PSP involved an updated screen (which is hated by some) and a couple of new buttons. The final update will probably have similar, minor bumps.
PSP2, huh? You have to imagine that Sony has been watching the iPhone's success and game distribution method via the App Store. Maybe Sony will buck the traditional physical media and fully embrace digital downloads. Plus, a larger screen, some sort of touchscreen, and accelerometers will likely make the cut.