An annual tradition for PSP Fanboy continues. We're going to make five predictions for the upcoming year. Will we continue our track record so far?

PSP Prediction #1: New limited edition PSP bundles with high-profile games and peripherals.
SCEA will release a special gold PSP-2000 system that includes God of War: Chains of Olympus and a Memory Stick for $200. Maybe it'll look something like the fan-made system? We hope so. Also, we're hopeful that Square Enix will release a limited edition bundle with Crisis Core, just as they did in Japan. Finally, Sony will release a PSP system bundled with GPS in the US.

PSP Prediction #2: The PSP Store will debut a huge franchise exclusively for download.
The PSP Store will get a major game exclusively for download. Don't be surprised if we see either a new LocoRoco or Metal Gear Solid game that'll be available on the Store only. We expect announcements at GDC and E3 later this year.

As 2006 came to a close, we took a look into our crystal ball and dared to make a few predictions about what would happen in 2007. How did we fare? Let's take a look ...

PSP Prediction #1: Sony will introduce a new portable addition to the PlayStation brand.
We thought Sony would focus much more on the media features of the PSP by adding a new XMB-compatible portable. "It'll be smaller than a PSP, feature a video-out, and will be compatible with a revamped PlayStation Store." Looks like the PSP-2000 did exactly that ... but unlike what we predicted, the system didn't include a hard drive.

PSP Prediction #2: Revamped PlayStation store features movies and music.
We were right about the new PC-enabled PSP Store, and we correctly predicted that Sony would totally snub Mac users. We were also right that Sony would can the failing Connect service. "The PlayStation Store will expand to the PC (but not the Mac), and will offer games, movies, and music for all of Sony's gaming and non-gaming platforms." Unfortunately, we were wrong about movies and music. Looks like Sony's been slow on delivering a multimedia delivery service for the PSP. However, we're glad we were right about downloadable games.

Now that 2007 has started, there's a whole lot of potential for the PSP. In similar fashion to last year, I'll give you five PSP predictions, but be warned: these are far more daring than last year's incredibly accurate predictions. Feel free to disagree with me, or give your own predictions in the comments section.

PSP Prediction #1: Sony will introduce a new portable addition to the PlayStation brand.
And it won't be a PSP redesign. In many ways, it will be exactly the same as the PSP: it will feature an upgradeable XMB that features Photos, Music and Videos. It will even be compatible with PSP accessories, such as the headset, GPS, and camera. Heck, it'll even play UMD movies. However, there's one thing it won't do: play games. The device will be set as a competitor to the iPod and will feature a portable hard drive. It'll be smaller than a PSP, feature a video-out, and will be compatible with a revamped PlayStation Store (see prediction #2).

PSP Prediction #2: Revamped PlayStation store features movies and music.
The Connect brand will be abandoned as Sony moves its digital distribution ambitions to the PlayStation Store. PS3 owners will be able to download HD movies directly to their systems. The 1080P downloads will also include free access to PSP-formatted versions of the film as an added value. The PlayStation Store will expand to the PC (but not the Mac), and will offer games, movies, and music for all of Sony's gaming and non-gaming platforms. With unrestricted access to Columbia Pictures, and a large audience of media-hungry PS3 and PSP owners, the PlayStation Store will be successful (a very distant second next to Apple's iTunes Store).

PSP Prediction #3: A popular Microsoft franchise will appear on PSP.
Although there are rumors that Microsoft plans to transform Zune into a gaming device, I think Microsoft will skip this generation's battle and support the PSP with one title from its library (which includes franchises like Halo, Gears of War, MechAssault). They've already allowed Majesco and THQ to publish multiple DS & GBA games, such as Age of Empires.

PSP Prediction #4: A future firmware upgrade will boost PSP speed to 333MHz.
Sony will finally unlock the PSP's full technical potential by allowing developers to use all 333HMz of PSP's processing power (the system currently is limited to 222MHz). Grand Theft Auto: San Andreas Stories will be among the first games released to take advantage of the upgrade.

PSP Prediction #5: Expect tons of established franchises & far less original IPs.
Okay, I wanted at least one sure-thing on this list. The PSP hasn't launched too many original IPs in its two-year life span. Publishers will look at sales and will continue to bring ports, remakes, and sequels to their established franchises. We'll see some of these announced or released throughout the year: Soul Calibur, Resident Evil, and yes, another Metal Gear Solid.

[Update 1: Corrected some info in prediction #3.]

This might creep you out. Or not. Back in January, Ed wrote up a list of five predictions he had for the PSP for the year 2006. How many did he get right? You may be surprised. Let's take a look:

PSP Prediction #1: The UMD movie market will collapse. "It will continue to be priced too high and include the bare minimum in terms of value add (we should have predicted this for 2005)... Inventories will rise, prices will plummet and new content being delivered on the format will level off to something more sustainable by the market."
Andrew comments: Ed hit this right on the head. UMDs were never priced the way they should've, and consumers responded. UMD continues Sony's line of producing unsuccessful media formats. Is Blu-Ray next?

PSP Prediction #2: The PSP will take on some very specific colors. "Count on at least two new colors, including a hot-rod red and a camo green, possibly marketed with or around the likes of, oh, let's say Gran Turismo 4 and Metal Gear Solid."
Andrew comments: While the US market continues to be ignored, Sony has released a number of colors in international markets. Scarily, like the camo green PSP... for Metal Gear Solid. However, to think Gran Turismo 4 would ever come out was silly!

PSP Prediction #3: The PSP will allow you to access your PS3 from anywhere. "You'll be able to access PSP content content that is stored on your PS3's HDD (media, game saves, whatever) by accessing it via the PSP over a wifi Internet connection... You won't be streaming PS3 games or anything like that, but who needs memory sticks now?"
Andrew comments: Wow. Great job predicting a feature months before its ever announced. Remote Play support does allow you to access your PS3's hard drive in almost the exact same way Ed mentioned. However, you won't be able to access it "from anywhere" until next year.

PSP Prediction #4: The PSP will get a price drop and then some. "Yeah, this one is a bit of a no-brainer, but we wanted to get at least 1 out of 5 right. The PSP will certainly see a price drop this year (likely sometime in the Fall, but possibly at E3). We expect the drop to be in the $50 dollar range."
Andrew comments: The "no-brainer" proves to be the only prediction to not come true. Sony shed $50 by going Core, but that isn't a price drop, persay. Ed predicted free goodies to be given away with every system, but Sony proves with its Entertainment Pack that it wants you to pay for bad pack-in UMD movies.

PSP Prediction #5: Sony will completely botch PSP advertising in 06.
Andrew comments: Ding! Ding! Ding! Ding! Ding! Ding! Ding!

How will PSP Fanboy fare with our 2007 predictions? You'll have to come back in a few weeks when we unveil them!