PSP2 Rumors Surface

For the umpteenth time, we have news of yet another PSP2 rumor. Eurogamer has reported news from an anonymous source close to Sony that claims a new PSP design is already in the works at Sony, and it will not come with the UMD drive as expected. Not only that, this new PSP will also feature a sliding display which offers access only to the shoulder buttons when closed, revealing a myriad of other keys when it is open just like many of the slider cell phones in the market at the moment. Do you think this rumor is substantiated, and how will Nintendo hit back if the PSP2 becomes reality?