It's clearly a day for new handheld console news. Sony's new PSP2 is not that far away from the shop shelves, and if rumours are to be believed it will be directly targeting the iPhone and iPod touch.
The source told PocketGamer that it will be on sale for Christmas this year and will have some interesting features, with a touchscreen system that slides up to reveal proper game controls, including Dualshock style analogue sticks. Sweet.
They're also making all content downloadable via the Playstation Store, which should be interesting when it comes to prices, to say the least, but it gets a tentative thumbs up for now, at least until we get bored and decide we like something else instead.