Speaking to GameDaily, Acclaim's Dave Perry said, "I can't reveal my sources, but you can be certain there's no UMD, which means a fully digital online device, and you know I know people."
In a Twitter post yesterday, Perry claimed Sony finally had a working model of the PSP2, and knew of a developer who was already working on titles for the new handheld. He suggested you'll be buying games on memory sticks now that the UMD is being retired.
What do we think? Sony's definitely got something lined up. Their own spokesman told Stuff earlier this week that, "These stories have been circulating for a while, so we'll see what happens at the trade shows in the summer."
Whether it's the PSP 4000 or PSP2, something is clearly in the works. We'll be heading to E3 this summer to get the full skinny, so make sure you stay tuned for all the news as we get it.