PSP with 50GB hard drive in 2006?

Joystiq is reporting that Michael Pachter of Wedbush Morgan Securities, speaking at the “Positioning for Profitability in the Video Game Economy” conference yesterday, said "he had heard that Sony is working on a flavor of the PSP that includes an internal, 50-gigabyte hard drive." "A prototype of the new portable might by out by year-end, but mass production of the new device probably would not happen until next year, he said." If this rumor would turn out to be true, it would make the PSP an even bigger player in the mobile multimedia scene, and a true threat to the iPod.