Internet rumors claim Sony’s much-anticipated gaming handheld, PSP2, will be called Veta. While we have had several speculative reports floating on this device, we have heard the developer deliberately released misleading information to trap potential leakers of information.

From the sketchy details we have managed to gather from various reports and sources, we understand the new device will be stepped up in terms of storage with twice the RAM capacity (read 1GB) as an Xbox 360. We have also heard the new device will flaunt a high definition 5-6″ screen and also claims “the console will avoid physical media and has a trackpad on its back”.

Expected to be launched next year, probably the third quarter, this device is triggering new rumors everyday. And we also hear the Veta will support memory sticks and will be launched sans a UMD drive. So, will it revert to digital downloads or can we assume gamers will be able to store titles on the memory stick? We don’t know yet but will let you know as soon as we get a whiff.