Analyst P.J. McNealy of American Technology Research predicts that Sony will announce two new Sony PSP consoles in Spring 2007.

One new PSP will feature a hard-drive and the other one built-in flash memory. Both would have an MSRP of $200.

Sony of course does not comment on these speculations. The It is also not the first time that the Sony PSP HDD rumor appeared. Back February 2005 a Sony PSP with 50GB was the word. PSP is only available since two years. This is a very short time for a game console to get an upgrade. On the other hand there is a chance for Sony to win more market share from the Apple Video iPod with a PSP that is a bit smaller and having a hard-drive. Anyway right now we are all just looking at the PS3.
More details on GameDaily Biz.