"My undisclosed sources tell me that Kotaku's report is mainly factually inaccurate ... [but a] new slimmer PSP is indeed in the works." The redesign, according to Rumor Reporter, supposedly has a slot loader replacing the UMD drive. The entire system will have "an even 'cleaner' look, much like the DS Lite." The system will feature the same sized screen (something Sony has been adamant about), but will have a "sidekick-esque" flip-screen, reducing the overall size of the system.
This "probable" rumor concludes with the same prediction that Kotaku made: the redesigned system will cost consumers the same price as the current model. However, unlike Kotaku, Rumor Reporter is stating that the system will only have 4GB of memory, as opposed to 8GB. With E3 only a few weeks away, we'll see which one of these redesign rumors are the most accurate.