The PSP2 will sport an OLED touchscreen and 3G data from NTT DoCoMo when it arrives later this year. The former means the screen will be physically larger, making the yet-to-be-announced specifications (Sony is said to be working on a new processor specifically for the handheld) even more interesting, while the latter will enable multiplayer as well as full video and game downloads over the Japanese cellular network, according to Japan's Nikkei newspaper.

Sony has already claimed the PSP2 is as powerful as the PlayStation 3, so the company has a lot of hype to live up to. The new device will reportedly include 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). It 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.

Sony will reveal the first concrete PSP2 details in Tokyo on January 27, but in the meantime, the rumors just keep coming. The date is a month before Nintendo's 3DS platform goes on sale in Japan. Sony is also planning to reveal more at GDC and E3 after the initial announcement this month. The PSP2 is expected to arrive in Q4 2011.