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This news just came in from the God of War II (PS2) launch event which Sony just held. First official details and confirmation of a PSP God of War game have been announced!

Cory Barlog and developer Ready at Dawn announced that the PSP God of War game would be "it's own story that connects to the overall story. God of War, God of War 2, and then if all the stars align God of War 3 will be the telling of a trilogy. This PSP story will be a further fleshing out."

The goal is for the PSP version to be just as big as the PS2 games, despite being on the handheld system.

"It is epic. It is big. There are hooks in the PSP story that I actually wrote from one of my first stories for God of War 2, so there are a lot of elements - we're going to keep connecting all this stuff. To me, it's a persistent world... I want the PSP version to not feel like the PSP version... it's just as big. It's just as epic. It's God of War."

And so it seems the PSP game will be a God of War 2.5 of sorts - not a continuation of the PS2 storyline, but a "fleshing out", as the developer calls it, of the PS2 storyline.

The developer also mentioned possible connectivity with PSP/PS2/PS3:

"As far as the connectivity and stuff, it sounds awesome, but really kind of just found out about Home ourselves... Home was in development, but nobody really on our development team was knowledgeable about it, so there wasn't much we could do about it."

Barlog also detailed some of the gameplay, reassuring us that:

"We're not reusing any levels. We're not doing any of that stuff. It's all original content. And the game will ship with a second analog nub - totally kidding! Not true at all!"

Haha, nice one Cory. You almost had us there (not). Stay tuned for further God of War PSP details!

Update: The conference has now finished. No trailers or screens were shown for the new God of War PSP and PS3 games, but the details they did unveil were very exciting nonetheless.

Update #2: PS3 version of God of War just announced!

Clarification: God of War for PSP is yet to be named, and will likely not be called God of War 2.5, but that is what we will be calling it until a more commonly used, or more official name is announced, since it expands on the storyline from God of War II.