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With the PSPgo price cut and recent PlayStation Phone rumors, today Kotaku.com reports that Sony's PSP2 will ditch the UMD and feature 1GB of RAM.

Additionally, VG247.com are reporting that PSP2 is currently codenamed Veta.

To quote: "One of the key ones is that the PSP2 will not have a UMD drive. The UMD (Universal Media Disc) was launched in 2004 for use in the PSP. Initially, the format was used for movies, but slow sales of UMD films lead to studios dropping support for the format.

Sony's PSPgo is UMD-free version of the PSP, and sources tell Kotaku that the PSP2 will follow in the footsteps of that portable. Games will be stored on a Memory Stick, according to one source. Though we've also been told that Sony is still puzzling out what the final non-UMD storage solution will be for the PSP2.

We've also learned that the PSP2 will be a much more powerful gaming device with twice the RAM of the Xbox 360.

While we don't yet know all of the portable's system specifications, we have been told that the PSP2 will feature 1 GB of RAM. That's compared to the 64 MB of RAM the PSPgo and PSP 3000 have. Both of those portables use a MIPS R4000 CPU clocked at up to 333 MHz. By comparison the Xbox 360 has 512 MB of RAM and runs a 3.2 GHZ CPU."
Source from: PS3NEWS.COM