Several sources have confirmed to Kotaku that the PSP2 does have a previously rumoredtouch panel on the back of the hardware. The touch panel was described as looking like a big mouse trackpad. When Sony showed the PSP2, it did not provide concrete details regarding how the trackpad will be implemented in games and instead is leaving that to the discretion of game developers.
The screen itself is not only sharper than the current PSP's, but about an inch larger. The larger screen means that the PSP2 will be larger as well. In the private meetings, Sony is touting the screen as "HD".
A larger PSP should not be that big of an issue for Sony — especially in a mobile environment with large tablets like the iPad. It also shows that Sony realizes it is no longer simply competing with Nintendo, but also Apple.
It is unclear whether this is the same handheld described by the Wall Street Journal. According to the the paper, Sony is working on a device that mixes a game player, an e-book reader and a netbook computer. In late September, there were also reports that the PSP2 hardware was in the hands of "numerous" developers.
Currently, the PSP2's hardware is not finalized, and Sony is having problems balancing battery, power and heat. There are apparently overheating issues, but Sony is, of course, aiming to have those issues corrected by the time the hardware is publicly shown.
Sony set the PSP2's goals, but is still tinkering with the portable's innards. The PSP2's tech specs are expected to change. Sources tell Kotaku that the PSP2's release window is fall 2011. Sony is not yet talking openly about the PSP2.
Sony did not offer a comment in time for publication.