Oct 6, 2010 20:31 GMT  ·  By

A British source familiar with the development process of the rumored PlayStation Portable 2 handheld from Sony claims that the new device is being prepared for a holiday 2011 launch date, with a host of video games prepared specifically for the device alongside it.

The source has told VG247 that “We’ve been told it’s coming in late 2011.”

If the launch window is correct Sony might unveil the device at the Game Developers Conference or at the E3 trade show.

It seems that a lot of video game developers already have developer kits for the PSP 2 in their hands, with a designer at Netherrealm Studios, working on the new Mortal Kombat, saying that the power of the new Sony made device is quite impressive.

Rumors have not included clear specifications for the Central Processing Unit or for the graphics processor that will be included on the PSP 2 but Sony has been quoted as saying that it has no plans to add three dimensional gaming capabilities to the new device.

Rumors are saying that the PSP 2 includes two cameras, one facing the user to allow for chat and pictures, and that a touchscreen interface will be complemented by physical controls similar to those on the currently available PlayStation Portable.

As with the PSP Go is seems that Sony is completely unable to keep its hardware development secret, with news linked to the PSP 2 appearing as early as May.

The new Sony device will face competition from the Nintendo 3DS, the platform that will be launched in Japan on February 22, 2011 with 3D gaming abilities and titles like Zelda, Metal Gear Solid and Resident Evil.

Sony needs a capable new device to retake the handheld market, where the DS family from Nintendo seems more dominant than ever and where platforms like the iPhone and iPad are also making inroads.