Sony has a new PSP on the way and it will have 8GB of memory. What remains to be seen is what form that memory will take. Initial reports were that it would be NAND Flash, but it appears now that Sony and Samsung are having trouble agreeing on a price. If that’s the case, Sony may look at a Microdrive instead.

Negotiations reportedly broke down between the companies on February 16th. Sony was likely holding out for a better price, since they will be buying a lot of NAND Flash memory since a PSP with memory should be a big hit. The developments between the two companies will have widespread implications in the world Flash market. On news of the breakdown, spot prices for NAND Flash fell between 3% and 5.3% in one day. Deutsche Bank has pointed out that, if the companies don’t reach a deal, world supply will outstrip demand by 10%, driving prices down. Good news for consumers, but a big enough hit to Samsung that they will likely renew their push to get a deal done.