I've always been under the impression that the Demasked team has been working directly with Nintendo. They've been too tight-lipped for this to be a "fan scene" endeavor. Their behavior has NDA written all over it, and who else would force them to go under NDA other than Nintendo itself?
And if Microsoft is one of their competitors, well, all I can say is that Microsoft doesn't have a handheld.
I'm sure that whatever they announce will be BIG, and it'll be announced on the day the PSP is released in March. Perhaps a teaser will be announced saying that full details will be announced at E3.
silks