Famitsu is reporting that Valhalla Knights 2 will be hitting the PSP sometime in the spring of 2008.
Valhalla Knights is a very different RPG for the PSP, dealing mainly with Norse mythology. The game takes a spin into other realms by throwing in robots, ninjas and the like. It is definitely a unique dungeon crawling RPG.
This sequel will expand upon its predecessor with more customization, new characters, and several new items, armor, and races. Supposedly, over 80,000 combinations will be possible from over 370 different types of armor.
Like the original, this game will feature not only an immense single player campaign, but also a full-featured multi-player mode. The game will have co-op mode and versus battle mode, although details are scarce on both at this point.
Be sure to check back for more details on this game as soon as they become available.