Imagination Technologies Group, licensor of graphics processor cores, is rumoured to be working with Sony on the latest iteration of the PlayStation Portable.
The company recently issued a press release stating that it was working with "a major international consumer electronics company", which is now rumoured to be Sony, according to EETimes.
Citing unnamed sources, the announcement is for an upgrade to the "PSP2" says the report, but Imagination would only state it is for a "high-volume consumer device".
Although the report mentions PSP2, it isn't clear whether the technology would be for an entirely new iteration of the handheld hardware, or a remodel of the orginal, such as the PSP 3000.
Imagination Technologies' licensing partners include Sega Sammy, Intel and Samsung.
Sony Europe has told GamesIndustry.biz that it will not "comment on rumour and speculation".