According to (Via Digital Foundry), Imagination Technologies' PowerVR SGX543MP chip - codenamed Hydra - will form the foundation for the in-development PSP2.

A quad-core version of the chip is rumoured to be Sony's choice, with Digital Foundry stating the on-paper performance of the part is a ballpark match for the original Xbox - certainly a large leap over the current PSP's capabilities.

Imagination Technologies describes its SGX543MP chip as a general-purpose computing on graphics processing unit, which in short means it can double as both a graphics unit and CPU. This could help Sony keep costs and power consumption to a minimum.