Well there's been a lot of speculation around a PSP phone lately and honestly I don't see Sony releasing a PSP phone unless it's capable of playing both PSP and PSP2 games and here are the reasons why.
First of all when I bought the PSP 1000 imported from Japan when I was 16/17 it was an amazing piece of hardware I couldn't believe a hand-held was capable of such amazing graphics.
6 years on the Iphone 4 slaughters it graphically, I know a lot of you will find that hard to believe but when you look at the specs of the PSP it's very weak compared to a modern smartphone.
The PSP base specs are as follows 32mb of RAM and a 333mhz processor, sure with later revisions the RAM doubled at the processors are slightly more capable but games have to be designed to play on the base specs.
Now lets assume for a moment the PSP phone will feature the latest 1GHZ snapdragon processor. The new snapdragon processor found inside the HTC Desire HD is a lot more graphically capable then older 1GHZ snapdragons
The QSD8x50 chipset found in HTC EVO 4G, GPU - 3D graphics with up to 22M triangles/sec and 133M 3D pixels/sec
The MSM8x55 chipset found in HTC Desire HD, GPU - up to 41M triangles/sec and 245M 3D pixels/se with dedicated 2D Open VG graphics hardware
As you can see it's almost twice as capable and most likely more capable then the GPU found in the Iphone 4 which is the same GPU found in the 3GS.
If Sony where to create a machine using the new 1ghz snapdragon it would be easily a HD graphical powerhouse. Using something like that simply to power a PSP would be a massive waste not to mention the 512/more system RAM would be far more then needed for a PSP.
So I honestly don't see Sony releasing a crippled PSP phone when they could simply release the PSP2 phone along side the PSP using similar hardware. Honest if they did I would certainly be trading my Iphone 4 in for a PSP2 phone it would be a massive success for Sony am sure.
Any thoughts from the users here on reasons why you think the PSP phone will be PSP2 capable of not.