Chatting with Silicon Alley Insider, Sony's John Koller called the PSP2 rumor "completely unfounded." Koller called the push for a PSP2 a "misinterpretation" for the PSP's refocused direction away from UMDs and move towards digital distribution. Despite a flat out denial from Sony, Eurogamer -- the publication which first ran the PSP-4000 and PSP2 rumors -- insists that its sources are "adamant that Sony has specifically discussed both products with them, and that games are in development for a PSP successor."

It's a bit of a tug-of-war here. Who do we believe? It's not too farfetched of an idea that the PSP-4000 is due for next year considering that new hardware has come out annually for the past two years. Couple that without mention from Koller, and it's very likely that this could prove to be still on the table. As for the PSP2, it's never a good time to talk about replacement hardware during a key shopping season, if you catch our drift. Perhaps we'll hear more as we enter 2009.