The main news of E3 has been Sony unveiling the new PSP handheld and a discussion of the “cell” processor which is what is currently believed to be the PS3’s chip. Sony also took the expected step of lowering the price of the PS2 to $149. The PSP features a stylish 4.3 inch 16x9 LCD screen. Battery life is a concern though with estimates ranging from 2.5 hours to 10 hours.

The PSP will use a 1.6 GB UMD disc, which Sony is also pushing as a new way to deliver music and movie content. Final Fantasy: Advent Children was announced as being one of the first movies that will be released for the system. The graphics are looking on a par with early PS2 titles. The system will support the wireless standard 802.11b to enable gamers to take on each other without having to sit next to each other. The PSP is set for release at the end of the year in Japan, and the end of the 1st quarter in the United States and Europe.