There's a rumour wafting around that the entry-level Next Generation Portable / PSP2 model has been downgraded so Sony can price competitively against 3DS.
Which is worrying - the 3DS wasn't exactly cheap (RRP Ł230), although shops are cutting prices now.
IndustryGamers picked up a report by a "reliable French source" that said the NGP without 3G could have its RAM reduced from 512MB to 256MB.
The same model may also sacrifice internal flash memory in favour of cost-cutting external memory support.
Nevertheless, graphical capabilities of the runt model are apparently unscathed.
Sony hopes to launch the Next Generation Portable this year. That's still a tentative goal, mind you, and may not apply to all regions. Sony's home turf of Japan tends to go first. And Japan also happens to be Sony's most successful PSP market.
Sony has never announced an NGP price, but has said it will "affordable" - each machine will be "sold at a loss".