The new PSP will still play UMD games, and, "From all indications, the next PSP will have the same graphic and sound capabilities of the current system." However, unlike the DS Lite, which was a purely cosmetic re-design, the next PSP will apparently have quite a few new features. PSM claims the new handheld will feature:
- 8GB of internal flash memory, produced by Samsung
- Thinner and lighter design
- Some kind of built-in camera
- A re-designed slot loading UMD hatch which more closely resembles a cartridge port
However, if more input options were added, it introduces the possibility that, while basically the same machine, at some time in the future there could be software released that will not be 100% compatible with the old PSP model, or may be missing features, ala the Game Boy after the Game Boy Color launched. As PSM says, "If it's done, this does create problems for owners of current PSPs, since games requiring two analogue sticks will obviously be released for the newer hardware. It's for this reason that we at PSM still feel that this addition to the PSP spec may not happen".
We'll keep you updated as more information comes our way.

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