The latest issue of Famitsu magazine has revealed that SEGA is planning on releasing a PlayStation Portable entry in the Phantasy Star series.
Simply titled Phantasy Star Portable, the game is currently in development by Alfa System and is scheduled for release some time in 2008. According to the Famitsu article, the game is “essentially a PSP version of Phantasy Star Universe, including expansion pack Ambition of the Illuminus".
A number of PSP-exclusive features are planned, including all-new stories and four-player co-op via the handhelds ad-hoc wireless networking capabilities, though it is currently unknown whether or not online play will be enabled.
More as it breaks.
Source: Eurogamer

I'll definitely pick this game up
Man,i really want a PSP,but sadly am still saving up for my BLACK BEAST OF POWER!!
If it does have online i hope its not p2p online.
I was dissaponted in universe. It didn't feel like PSO for the dreamcast. I want that sensation again. the design was brilliant.
Phantasy Star was the one reason why the Sega Genesis did alright. This announcement is sweet.
PStarPoratble, that game is going to be so awesome. i quit PSU for the PC and PS2 because of the HAX >.<: i really wish, and i know this is going to sound retarded for a litlle bit, but i really wish they would make a PSUniverse for the PS3 and have it connect with the 360's universe; that would solve alot of problem that i have with that game.
I passed on the PS2 version, I may get this though.
I doubt we'll have online multiplayer though, Last I heard they were still trying to charge for online services which frankly PSO never deserved them because it wasnt a real MMORPG. It was the same thing as Guild Wars and that charges nothing for online play.