Sony’s new compact handheld console will feature sliding touchscreen and dual analogue sticks

Whether it’s labelled the PSP 4000 or the PSP 2, there’s been a lot of rumour recently about an imminent successor to Sony’s handheld console. There’s also been a lot of talk about how Sony might react to the competition on offer from the phenomenal success of Apple’s iPhone and iPod touch.

Unsurprisingly the console manufacturer has been comparatively mute in both cases, denying the existence of a PSP sequel and any threat from Apple. However, having spoken to an insider source – who’s not Dave Perry, but is a developer working on the new hardware – we can reveal that the new handheld will arrive before Christmas and will be far more similar to the iPhone than the current device. Read more