The game will be developed by Rockstar Leeds as "Sony's extremely impressive technology has allowed Rockstar Leeds to do more on a handheld machine than we could have ever imagined."
Rockstar Games, the world-renowned publishing label of Take-Two Interactive Software, Inc. (NASDAQ: TTWO), is proud to announce Midnight Club 3: DUB Edition and a brand new iteration of Grand Theft Auto for the highly anticipated PSP™ handheld system. Midnight Club 3: DUB Edition and the new Grand Theft Auto title, which will be set in Liberty City, are being developed by Rockstar Leeds in conjunction with Rockstar San Diego and Rockstar North, respectively. Both titles are expected to be available near the launch of the PSP handheld system in North America and Europe.
GTA Advance wasn't exactly a big success after it was released on the same day as San Andreas, so we have decided to rename that particular forum to GTA Handheld to accomodate posts about GTA on the PSP as well in the hop it will bring more activity to it,
Link: http://ir.take2games...eleaseID=152207, Forum