Some specs have been revealed about the upcoming Sony PSP (PlayStation Portable). I personally think that the market for handheld gaming devices is only getting smaller...

"The PlayStation Portable will come with a 333MHz processor that includes integrated graphics, a specialized core for video, a reconfigurable processing core that will enhance sound and 4 megabytes of integrated memory... The system will also include a 4.3-inch screen and play 1.8-gigabyte optical disks based on the Universal Media Disc standard from Sony..."