According to Sony, PSP2 will get rid of UMDs and the UMD drive which means no backwards compatibility and their goal is for "Xbox 360"-like graphics and power which explains why the handheld keeps overheating and has battery issues.
Most likely the handheld is going to be even more expensive than the PSPGo and game prices could rise to match the "HD" ability Sony is saying.
http://kotaku.com/5675525/psp2-will-...yline=true&s=i