Is Sony going to make a new PSP?

I've been hearing rumors lately that Sony may be working on a new iteration of their iconic PlayStation Portable, the PSP. But with the rise of smartphones and dedicated gaming consoles, is there still a market for a dedicated handheld gaming device? And if so, will Sony take the plunge and release a new PSP? Or have they already moved on to other projects, leaving the PSP behind in the past? Only time will tell, but as a gamer, I'm certainly curious to see what the future holds for Sony's handheld gaming lineup.