According to New Launches Sony is set to release a “new” version of the PSP with an incorporated 8GB nand-flash, rendering the current memory sticks pretty useless and setting them once again as the expensive luxuries they used to be regarded as.

The good news for current PSP owners is that this new PSP will probably increase the maximum allowed memory the PSP supports which is currently 4GB maximum (not that there are 4GB memory sticks yet, but there is already a 4GB external drive for the PSP.

This measure is probably a way to give the PSP more value for new consumers, keep it’s price higher than the DS (though I don’t consider that a good strategy), and try to convince consumers to purchase more UMD media, since this new version of the console will most likely include the most protected firmware to date. Unless someone eventually manages to crack the firmware and flash it with a version that allows homebrew I’m afraid that the once great homebrew community of the PSP will dissipate over time.

Then again 8 GB would give the PSP an opportunity to compete more seriously with other PMPs or even the iPod, well if they made it a bit smaller perhaps.