Update #1:

Sony’s rumored plans for a new PSP supposedly dubbed the PSP Go!—may also usher in a new wave of games becoming digital downloads for the device. That includes, allegedly, the long-awaited arrival of Gran Turismo Mobile.

According to 1UP’s report on the oft-rumored PSP-4000/PSP Go!, Sony will be releasing about 100 new and classic PSP games in downloadable form on the PlayStation Store when the new PSP launches. 1UP even writes that Polyphony Digital’s Gran Turismo Mobile is “said to be one of the premier launch titles.”

Announced in 2004, there’s been little mention of the portable racing simulator, with Polyphony boss Kazunori Yamauchi saying the title was still “moving forward” last November.

With two alleged storage options available (8GB and 16GB), future PSP owners may have to budget their internal storage space wisely, unless Sony has something clever planned for managing all those downloads.

1UP says it expects Sony to announce the new hardware at E3, just mere weeks away.

New Details of Sony’s oft-rumored revision to its PlayStation Portable may have been leaked a little earlier than the company was expecting, as chatter of the PSP Go! appear to have leaked a few days early.

According to the initially uploaded most recent episode of the ”at1UP” podcast, Sony will soon be announcing the PSP Go!, with some of the web site’s staff having already seen the device. The podcast goes on to describes the new hardware iteration as having “slide out” or “flip out” controls, as well as a larger screen.

The biggest point of contention among 1UP staffers appeared to be the name of the new hardware, lightly derided as “PSP Go exclamation point.”

That episode has since been edited to remove mention of the PSP Go!.

If true, the description of the new hardware appears to jibe with previous rumored mentions of the “PSP-4000″ which is allegedly planning to drop the system’s UMD drive in favor of internal storage. With more and more PSP games going digital download only—and additional loose talk of in-store kiosks that would allow gamers to rip UMD games to a storage device—that particular rumor is starting to look more feasible.

Sony itself surveyed PlayStation fans on what features they’d like to see in a new PSP earlier this year, hinting at the possibility of built-in storage, a touchscreen interface and built-in keyboard.

The arrival of the new PSP hardware is expected to hit before the holidays, according to reports.

“We haven’t announced any new PSP hardware and can’t comment on rumors or speculation,” an SCEA rep told Kotaku when reached for clarification.

Thanks to PJ and Mr. Wednesday for the heads up.

[via Kotaku]