Is Sony Prepping PlayStation Portable 2 for E3?

One of the bigger announcements at E3 this year will be Nintendo's 3D handheld console, the 3DS. However, if unnamed industry sources are correct, Nintendo is going to have to fight for the limelight with Sony.

MCV says it has been informed of significant increases in Q4 2010 marketing spending at two key publishers. This, coupled with the fact that the PSP is quite out of date and the PSPGo was a non-starter has led to speculation that these companies are laying the groundwork for new hardware.