The latest issue of Japanese Famitsu magazine reveals Phantasy Star Portable for the PSP. Excellent news we thought, then noticed that it's just a port of PS2 and 360 effort Phantasy Star Universe... without the online stuff.
Phantasy Star Portable (to avoid confusion we won't refer to it as 'PSP') is based on the PS2 and 360 MMO and its upcoming expansion, with the addition of new missions and story points.
Unfortunately the online mode - the focus point of PSU - has been reduced to 4-player wireless multiplayer. Disappointing, but if they can cut off the story fluff for wireless games it could turn out to be a harmless, fun hack-n-slash.
The handheld version is being handled (ho ho!) by Japanese developer Alpha System, who we (and our mate Google) have never heard off. Lets cross our fingers together.