PSP2 at E3?

MCV are reporting that publishers are “significantly” increasing marketing plans for Sony handheld in quarter 4.

Arguing that the PSP has seen sales drop recently and that the PSPgo has yet to see any kind of real success, speculations are that Sony may have a big reveal set for E3 with the PSP2.

Two key publishers are said to have already increased their marketing plans with a third stating that they were waiting for an announcement from Sony before they reveal their future PSP plans despite alluding to unnamed PSP projects continuing.

The PSP faces growing competition from Nintendo and the DS and also from Apple and it’s iPhone and iPad. Is the PSP2 Sony’s way of fighting back?

As always, things are a bit sketchy and it’s all rumour and speculation but this isn’t the first time that the PSP2 making an appearance at E3 has been discussed. What do you think? Is this the right time and is it needed?