The Next Generation Portable Exists

"On the rear of the portable, there is a touchpad that is the same size as the screen. In the game demo I played of upcoming NGP title Little Deviants, players use the rear touchpad to manipulate cute balls around a lush cartoon landscape. But by pressing on the rear touchpad, it appears as though players' fingers stick up underneath the terrain, altering the landscape." - Kotaku

The PSP2 has just rocked the Earth at Sony's Japanese press conference. It features front touch OLED screen, rear track pad, dual analogue sticks, Six-axis motion control, trophy support, Wi-Fi and 3G connectivity. Demonstrations of a new Uncharted title, Metal Gear Solid 4 and Yakuza 4 were shown.

"This game used the model data and environments from PS3, and it was exported directly to NGP," Kojima said, adding "On NGP, we can enjoy the same quality as the PS3." - Kotaku

Holy crap!

Also demonstrated was the latest Monster Hunter game for the original PlayStation Portable to show off backwards compatibility. No there is no UMD drive, it will be compatible with your existing PlayStation Network Store PSP purchases. Games for the new portable will be delivered on the PSN and on flash cards for retail stores.

Tech info copy and pasted from the PlayStation Blog, because I'm lazy like that ;) -

Key NGP features:

* Multi-touch 5-inch organic light emitting display (OLED) as the front display
* Multi-touch pad on the rear of the device
* Dual analog sticks
* Two cameras (front and rear)
* Software titles on small, dedicated flash memory-based cards
* Three motion sensors, gyroscope, accelerometer and electronic compass
* Wi-Fi and 3G network connectivity
* PlayStation Network access, including ““LiveArea™”, “Near” and “Activity” log features Trophy Support
* NGP will be able to play PSP titles, minis, PS one classics, video and comics from the PlayStation Store.

Now, the technical specs:
CPU - ARM® Cortex™-A9 core (4 core)
GPU - SGX543MP4+
External Dimensions - Approx. 182.0 x 18.6 x 83.5mm (width x height x depth) (tentative, excludes largest projection)
Screen
(Touch screen) -5 inches (16:9), 960 x 544, Approx. 16 million colors, OLED
Multi touch screen (capacitive type)
Rear touch pad -Multi touch pad (capacitive type)
Cameras - Front camera, Rear camera
Sound - Built-in stereo speakers
Built-in microphone
Sensors - Six-axis motion sensing system (three-axis gyroscope, three-axis accelerometer), Three-axis electronic compass
Location - Built-in GPS
Wi-Fi location service support
Keys / Switches - PS button
Power button
Directional buttons (Up/Down/Right/Left)
Action buttons (Triangle, Circle, Cross, Square)
Shoulder buttons (Right/Left)
Right stick, Left stick
START button, SELECT button
Volume buttons (+/-)
Wireless communications Mobile network connectivity (3G)
IEEE 802.11b/g/n (n = 1×1) (Wi-Fi) (Infrastructure mode/Ad-hoc mode)
Bluetooth® 2.1+EDR （A2DP/AVRCP/HSP）