Joystiq writes: "If Tuesday's reveal of new -- even exciting -- games coming to PSP knocked you on your rump, you'd best be seated before reading any futher. Comfy? Good. Here's the deal: Joystiq has learned from a trusted source that Ready at Dawn, the studio behind the PSP's excellent God of War: Chains of Olympus, is working on a new Kratos adventure for PSP. Apparently the studio hasn't sworn off PSP development once and for all.
The informant tells us Ready at Dawn did, in fact, ship all of its PSP development kits back to Sony last summer, but received new kits in late 2008 after Sony ordered up the sequel. It's possible that, given its current state of development, the game might appear in some form at June's E3 Expo, our source reports. The title seems an unlikely candidate for release this year, but could be timed to coincide with God of War III's launch, which may occur in early 2010."