And just what the heck is that strange watercolor to the left? According to this french website. SEGA Prepare Un Console Portable Pour 2007, which means of course: Sega is working on a handheld for next year.
Codenamed “Hedgehog” the little device is rumoured to be able to play old Sega games with Genesis titles being the most probable, though the control looks eerily similar to the Dreamcast controller.
Real? Fake? Really Fake? E3 is the only time worth announcing such a device, so if we don’t see it next month, we’ll know its a dud.
Update: This is really fake. seeing as I first saw this on April 12, my “april fool!” radar was less than adequate.

A long while ago I heard about this little guy and thought it might be neat. They certainly seemed to have some cool specs, and if Microsoft Game Studios was working on it, then it might’ve been the portable x-box.
But not really. It sank so fast, I never even saw one in stores. N-Gage at least made it to market. Gizmondo was a massive disaster, and now Game Trailers has been nice enough to piece together what happened in the last year, from the announcement of the portable to the destruction of the CEO’s Ferrari.

According to a post on Ain’t It Cool News of all places, Sony may try to take the fight harder to the DS and other non-gaming devices by releasing a slimmer, high capacity, more functional PSP by Winter 06.
Here’s the relevant quote from the post:

Seems Sony’s current internal plans call for a release of a refitted PSP around Christmas this year. The device will, indeed, be streamlined (thinner), lighter, boast 4 gigs of memory and a camera. Proteus indicated Sony is having a hell of a time with PlayStation 3 on several fronts (between PS3’s Cell processor and its built-in Blu-ray DVD, cost effectiveness has pretty much gone out the window). Seems the ever-phantasmic PS3 may well be delayed until next year, with Sony’s reworked PSP being positioned as a lead-in to its release (in the same way Nintendo’s release of the oh-so-sexy DS Lite heralds the coming of Revolution).

Better PSP revealed at E3 could be just the sort of distraction Sony needs if the PS3 delay ends up being until 07. Its cold comfort, but if Sony does in fact rededicate efforts toward the PSP hardware maybe more software will follow.