At the recently completed E3, Sony officially revealed the PSP Go (lots of pics, video, and info had been leaked weeks before). Here's the breakdown....
First, no more UMD drive. So get ready to snap up some games on the cheap. Only digital downloads, meaning far more spying on anything you might be doing to the hardware (M$ will shut down XBoxes that have been modded with bigger hard drives if you connect to the 'net. For the PSP, you want games? You have no choice but to connect to the 'net). So I won't be able to play my Worms and Puyo Pop games on it. That alone makes me say "Fuck it."
16G flash memory. Shouldn't take long to fill.
Redesigned to put the controls under the screen instead of at the sides.
In short, it looks more like a cell phone and handles apps like an iPhone.
Oh, and it costs $250.
So, their solution to the PSP, which isn't selling, is to make it more inconvenient to collect games and charge $80 more than the current unit that isn't selling.
Good plan. Let me know how it works out for ya.