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The PSP has been getting a lot of bad talk recently.

Retailers, sick of the low sales of the PSP, and the need for more premium display space, gave Sony an ultimatum, “Drop the Price of the PSP, or We’ll Drop the PSP From Stores”.

But unfortunately for them, nothing was released at Sony’s last event DestinationPlaystation, last year by the first anniversary the price was dropped by $50, so it is quite possible for it to happen again. According to Sony, thats not part of the plan.

Something else is though, With reports of Sony waffling over the PSP2, saying it could be just a slimmer PSP, or it could be a monster with in-bedded flash memory, and a bigger screen. Due to the multiple reports coming from different sources, I cannot be sure whats going to happen. Just that something is going to happen, and soon.

Sony also hopes to use the iPod pricing scheme with the new wave of PSP’s whether it is the new color designs that The US got skipped over with for Europe, and Japan, 8Gb en-bedded flash memory, or even a video/music download service. What ever they are cooking, it got retailers excited, what it is, we’ll have to wait for that. The only thing thats definite for the project, is that the screen will stay the same size, what a surprise.

[1up] [Gizmondo]