The PSP is and has been losing to the DS (and the DS Lite, and now, the DSi) for a long time, and many agree that something new needs to happen — what many hope, a new PSP console, that can not only combat the new DSi, but also the iPhone and iPod touch.

The latest rumors suggest that Sony is working on a new PSP with dual thumb sticks that is rumored to be released at the end of this year. Some suggest this will be called the “PSP 2″, and will ditch the UMD drive, be slimmer, and feature a touch screen much like the iPhone and iPod touch.