And not only that, it looks like it's coming later this year. There have been rumors ever since the DS Lite hit that Sony was also planning a redesign of its portable.
Word has it that a big announcement will most likely hit at E3 with Sony unveiling the redesigned portable. An announcement of launch date (which should be sometime 4th quarter) is entirely possible as well. The redesigned product apparently does exist as this is what we've heard so far:
The screen is gorgeous
The loads are faster
Internal flash - 8GB
Possible built-in camera