“No, there are currently no plans for a PSP2. I go to Tokyo quite a lot and no one has referred to it – I think they have their hands full at the moment.” - Sony Computer Entertainment Europe president David Reeves
With Sony still recovering from the PS3 issues, I actually believe Mr. Reeves. There may be a PSP2 in the future, but I think Sony might want to take the money that portable development would cost, and focus it on expanding/bettering/promoting the PS3 for years to come. Looks like Nintendo might be going the next portable round alone…unless Apple decides to really step into the ring.