The PSP is primarily a game console (PSP games come in UMD, or Universal Media Disc, format), but it can also play UMD-format movies. Using a memory stick, the PSP can play music and video files, and display picture files such as photos. This portable console can also connect to the internet via a web browser (not incuded in early firmware releases) and built-in wi-fi.

As its name suggests, the PSP -- or PlayStation Portable -- is a smaller, lighter version of Sony's PlayStation. It is not as powerful as the PS2, but more powerful than the original PlayStation, and it has a built-in screen and speakers so you don't have to plug it in to anything to use it.

Sony has also announced an add-on camera and a GPS device for use with the PSP, expanding its capabilities even further.

Specifications
Color:

black
ceramic white (Japan and Europe only)
pink (Europe only)
Tsukimi -- black with copper (Japan only)
Kachofugetsu -- white with black and red (Japan only)

Dimensions: 6.7"/170 mm wide x 2.9"/74 mm high x .9"/23 mm deep
Weight: .62 lbs/280 g (including battery)
CPU: PSP CPU (1-333 MHz)

Memory:
32 MB Main Memory
4 MB embedded DRAM

Display:
4.3", 16:9 widescreen TFT LCD screen
480 x 272 pixels
16.77 million colors
maximum luminance 180/130/80 cd/m2 (when using battery pack)
maximum luminance 200/180/130/ 80 cd/m2 (when using AC adaptor)

Sound:
built-in stereo speakers
headset connector
Connectors, Ports and Drives:
IEEE 802.11b (Wi-Fi)
USB 2.0 (mini-B)

Memory Stick Duo
infrared
DC in 5 V connector
headset connector
UMD drive (Read only)

Buttons and Switches:
d-pad
analog nub
triangle, circle, cross, square
right and left shoulder
Start, Select, and Home
Power/Hold
display brightness, sound, volume up, volume down
wireless LAN on/off
UMD latch

Power:
lithium-ion battery
AC adaptor

Access control:
UMD region coding
parental control

What Does It All Mean?
Basically, what all these fancy specs come down to is a kick-ass handheld gaming machine with amazing graphics for its size, that can also play movies and music, display photos and image files, surf the web and, with every new firmware release, even more cool stuff. Phew!

As for whether or not you should buy one . . . well, you will have to decide for yourself, but I have never regretted buying mine.