Sony hasn't given up on the PSP by a damn sight. The console is doing quite well in Japan, but feels stifled somewhat in other territories. But what's the masterplan for the PSP? That Slim&Lite is nice and all, but how long is the PlayStation Portable going to last? Sony Computer Entertainment Europe suit Zeno Colaço (pictured, not in dress) states:
We definitely have the ambition for it [the PSP]to feature very strongly in the future, both on its own and also complimentary to PlayStation Network environment and the PS3. But we'll have to wait a while before we can fully reveal the direction we're going in. Ten years is certainly the long-term plan though.
No clue if Sony is planning slimmer PSPs in the future or what. But still, having a long-term plan is good. Not having them can make one look unprepared, you know.