• Update: See the latest details on the Sony NGP

Sony is to reveal a true sequel to the PSP at this year's E3, according to those close to the company.

Games industry rag MCV has spoken to an unnamed source who believes that two key publishers about the launch who seem to think that a new handheld will be the main story for Sony at E3.

The publishers are gearing up for a new hardware iteration from Sony and the signs are pointing that it will be the PSP which gets upgraded.

PSP redux

The last update of the PSP, the PSPGo, was underwhelming. Like a product out of sync with its time, Sony got rid of game discs and made the portable able to receive content by download only.

This meant that anyone who had an old PSP would not be able to use their old discs on the system.

Downloads may well be where gaming is going, but this was a leap too far with Sony never actually releasing sales figures of the device.

With Nintendo gearing up to woo gamers with novelty 3D screens and Apple making more of a push in the gaming sector with the iPhone, is Sony going to trump this with an all-powerful handheld contender?

Via CVG and MCV