With all the rumours going around, I think it's safe to say that a PSP redesign is on the cards, but in regard to what others have metioned, the statement that the PSP will have 8GB of internal memory DOES NOT reduce the credibility of the article as I see it. Whilst 8GB of flash memory is expensive at the moment ($70 or so) by fall when the new PSP is released costs will have fallen, so a price point of $170 is not out of the question. Also the internal memory could just be refering to an 8GB pro Duo bundled with the machine (à la 1GB bundle). Some may be curious as to why Sony would want to bundle so much memory with the system considering the profit they make from their overpriced proprietary media - If the inclusion of internal memory is true it would suggest that along with the smaller system profile, Sony are trying harder to market the new PSP as an ipod/zune competitor (in addition to playing games). Since the DS has now established itself as the superior gaming device, Sony will most likely now try to push the PSPs multimedia capabilities hoping to persue a larger chunk of the personal music/video player market.
*Deep breath*
...Or something like that.
Yeah, i pretty much agree. Although i feel that its highly unlikely even by the time of its release that it will include that much internal memory.
Oh and good points to the other guys discussing the big profits sony must be making on their memory cards
Sony will probably come up with some new anti-firmware hacking measure again I assume.