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.