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It seems that Sony's next-generation handheld gaming system has been delayed due to hardware issues.
According to QJ, Charlie Demerjian over at Semi Accurate said that the PSP2 will be powered by an Nvidia Tegra 2 but due to its high power consumption, Sony is now holding back development of the device until Sony fixes its stuff:
It is now set for a CES showing, but it will almost assuredly be released at a later date. This isn't due to the number of engineers mauled by moles yesterday, but because the Tegra 2 is massively over it's promised power budget. In a segment that finds 5% overages unacceptable, Tegra 2 is 20%+ over power budget. That explains why Nvidia PR suddenly changed the focus of the PSP2 screed to avoid the word 'phone', but, luckily for Sony, the PSP2 does not have phone capabilities.
(...)
The power 'whoopsie' means delays and possibly spec downgrades for the PSP2, but we will have to see where it ends up. Between that overage and several showstopper bugs, Sony is said to be very miffed at Nvidia right now. Even the moles could sense that before they pounced on engineer after engineer. The scene in the streets is almost as bad as the scenes in the Nvidia meeting rooms when the Sony people come around.
I guess we'll have to wait even more now until we can put our hands on a PSP2.