PSP2 has "early PS3 game quality visuals"

The PSP2 – perhaps the worst-kept secret in gaming – can reproduce visuals on par with those seen in early PlayStation 3 games, a new report claims.

The handheld console – rumoured to release next Christmas – features two thumbsticks with concave indentations, IGN reports.

"As far as graphics are concerned, the PSP2 is a beast, packing enough processing hardware to produce graphics comparable to early PlayStation 3 titles," the site claims.

"The processor, we're told, is just over half as powerful as the PS3, though the specific framework of the cores and the clock speed was not revealed."

The PSP2, then, should be able to play games of a comparable visual quality to the PS3 because it renders to a smaller, lower-resolution display.

IGN suggests Sony aims to allow developers to port their PS3 games to PSP2 to create a "ubiquitous gameplay experience". Potentially, gamers would be able to seamlessly continue their PS3 gaming on PSP2.

In August Eurogamer brought you the news that the PSP2 features a touch pad on the reverse of the unit for additional controls.

And we've known for some time that the PSP2 features a slider design and two cameras – one on the front, one on the back.

Also known is its lack of a UMD drive – the PSP2 will run downloadable or memory-based games.

While the PSP2's graphical potential has already excited some, not everyone is convinced – earlier this week industry analyst Michael Pachter said it will be "dead on arrival".

"We're starting to see DS sales crack," he said. "The ubiquity of the iPod touch is cutting into the handheld market. I think the PSP is dead on arrival, I think the PSP2 is dead on arrival."