David Reeves, 14-year veteran of Sony and now chief operating officer of Capcom Europe, has told our sister site GamesIndustry.biz that Sony needs to release a true sequel to the PSP quickly if it expects to compete in the handheld market.
Rival Nintendo has this week revealed the 3DS in detail, wowing the masses at the annual E3 conference with hands-on demonstrations of a 3D console, its software and potential to reinvigorate the handheld market.
"It's an exciting time and you could possibly have two handhelds coming out within months or a year of each other," Reeves told GamesIndustry.biz.
Asked whether he expects a PSP2 to be released in the next 12 months, he said: "I'd like to the think it would be for the publishers and developers and consumers.
"Sony tried to make the transition with PSPgo, I think that changed some consumers' attitudes, but they need to come back with something on PSP pretty quickly to stay in the game because Nintendo are s*** hot at getting these things right. And they always get these things right."
Reeves has always been frank about the PSP platform, and last year admitted there were problems with the system - while he was still at Sony he suggested Capcom was one of the publisher's that could help lift the flagging format.
The PSP2 has not been officially acknowledged by Sony, but reports are suggesting the system will be a "technological monster", with one of the main features of the system a touch-screen interface.
The PSPgo, released only last year, has been a flop at retail, with Sony recently offering new users a massive 10 free games for the download-only machine. As well as issues with the software delivery, the high price also hindered sales.
"It was hard and it was very, very expensive," said Reeves. "Now they're offering 10 games and they have to try and revive it."