Michael Pachter Reckons Sony Will Reveal The PSP's Successor At Next Week's E3 Event.

Talking to MCVUK, he revealed that he believes the system will feature a touch-screen and will be somewhat tied into a subscription based Playstation Network service.

He believes the PSP2 announcement will be a pillar of Sony's E3 announcements a week today, alongside Playstation Move support and 3D gaming.

A PSP2 is becoming seemingly more likely, and if it is indeed real, Sony will need to get out of the gates alongside Nintendo, who are certain to announce their DS successor at the show. Man the stakes are high, Sony could find themselves locked in two different battles against two platform holders: the battle of motion controller against Microsoft's Natal unit, and the battle of the portable device against Nintendo. This E3 is certain to rock.