Kotaku reports Sony's upcoming PSP2 handheld console is expected to feature a powerful new processor, 3G connectivity and an OLED touchscreen:
A 3G connection would mean the PSP could download data (and movies, and music) over a phone network, greatly increasing the connectivity of the unit (the current PSP can only download via wi-fi, limiting its online use to wi-fi hotspots).
The other major, previously unknown piece of information in the report is that the PSP2 is expected to boast an OLED screen, which on a handheld this size would be capable of producing amazing visuals.
Interestingly, this won't just be a fancy screen; Nikkei reports it'll be a fancy touch-screen. Earlier rumours suggested that the PSP2 would feature a touch-sensitive panel on the back of the device; it's unclear whether this touch screen would complement or replace such a panel.