If all of the exciting news of the Playstation 3 wasn't enough, Ken Kutaragi revealed several upcoming features for the PSP:

-Major update to come in Spring.

-The PSP will support videophone technology in the Fall, with VoIP and Eyetoy functionality.

-The next update to the PSP Web Browser will add Flash support.

-Sony will add GPS support (presumably through an add-on) which can be used in conjunction with games. The first title to support it will be a Hot Shots Golf game, though exact details on how it will do so are unknown.

-Memory stick boot support available in Fall.

-The most exciting news is that the PSP will feature a PS1 emulator capable of playing PS1 games off of the memory stick. Sony will offer titles online, downloadable for a small price.

http://www.gamespot.com/news/6145973.html