1up is reporting that Sony is preparing to unveil its latest PlayStation Portable at the E3 video game conference in June.

Quoting sources involved in the next system, 1up said the new handheld will do away with UMD discs and will features a slide out set of controls, as seen by the mock-up above. The new device, which 1up believes will be called the PSP Go!, will come in 8GB and 16GB versions and will be available in September in Japan and in October or November for the U.S.

It’s unclear if this is the extent of the improvements. The PSP Go! may mimic the fading Sony Mylo 2 device, putting in a touch screen and camera, speculates 1up. That would make it more competitive with both the new Nintendo DSi, which now sports cameras, but also the iPhone and iPod Touch, which have become popular gaming platforms. It appears that the new PSP won’t include a second analog stick, a popular request from gamers.