Earlier this week, Sony unveiled their Next Generation Portable, or NGP as it's presently being codenamed.
The successor of the PlayStation Portable, the NGP will feature a multi-touch display, multi-touch functionality on the rear casing, dual analogue sticks (finally!), and it will be able to play PSP titles and other content from the PlayStation Store.
Regrettably, it doesn't appear that it'll be able to play PlayStation Portable games on UMD (unless some kind of transfer option is made available), so current PSP owners won't want to dump their current portable console just yet.
You can check out the full specs here, and NGP will be launching late 2011.
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