To start the hype, Sony has told licensees that the PSP2 "is as powerful as the PlayStation 3," according to MCV. That is a bold statement, and certainly one that the company is going to have a hard time satisfying.
The company will reveal the first concrete details regarding the handheld in Tokyo on January 27. This is a month before Nintendo's 3DS platform goes on sale in Japan. Sony is already planning to reveal more at GDC and E3 after the initial announcement this month.
The new PSP is expected to arrive in Q4 2011. It includes an HD screen, twin-stick controls, and may even incorporate phone functions, but this won't be its primary use (that's what the PlayStation Phone is for). The device will also have some type of media format to make sure retail has a part to play in the console's lifecycle, but the device will also provide access to plenty of downloadable content (smaller games and apps) via PSN.