Expect to see a GPS add-on for the PSP, as well as compatible games, by early 2009.

Sony is determined to make the PSP a multimedia gadget.
They didn’t convince that many people to buy into the UMD format for movies, but they could get users to drop cash on GPS gaming. Apparently, they are planning on an add-on for such features.
“That’s [GPS] going to be a big one for us,” said John Koller, Sony’s PSP senior marketing manager. “It changes the dynamics of GPS but also changes the way developers think about games on PSP because you can start integrating GPS into it.”
That’s right—this GPS won’t just get you where you want to go. MTV Multiplayer says that the company plans to incorporate GPS into gaming. What does that even mean, and more importantly—does it seem fun?
Of course, Sony still has to talk to publishers about developing such games. If all goes well, we can expect to see Sony launch its PSP GPS add-on early next year.

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funny.... picture is running mapthis! (homebrew running on a hackedpsp).. this is so sad that one guy in his basement is outdoing a major video game corporation.