The video game rumor mill is abuzz with reports that Sony is working on a new version of its handheld PlayStation Portable game machine a gadget that will have touch controls on the back.

With the Gamescom video game trade show taking place in Germany this week, Eurogamer has reported that they spoke to three separate development sources who have seen and used the new PSP. These sources say the machine is about the size of the PSP-3000 and that it has a rich and detailed screen, but that the most interesting feature is the way games are controlled by a touch-sensitive area on the back of the device behind the screen.

Though Sony did not reveal a new handheld game machine at Gamescom, according to Eurogamer's sources, the company has been showcasing an unfinished version of the gadget to publishers using several first-party games. Sony has also reportedly settled on its business model for the device and may be launching it by the end of 2011, the sources said.

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i think sny is getting a little out of hand

and be sure to check out the whole article at the link above