"Gaming

While its robust media and online functionality are impressive, for most buyers, they'll be decidedly secondary to the PSP's raison d'etre: gaming on the go. Yes, Nintendo's DS remains king of the portable gaming scene in terms of units sold, but plenty of people are looking for more sophisticated (read: less kiddie-oriented) games than the DS offers. And for those who can't abide the oh-so-cute antics of a Pokemon, Cooking Mama, Zelda, Mario, or Animal Crossing title, the PSP will be a welcome breath of fresh air. The graphics on the PSP are noticeably better than those on the DS as well--games are essentially at the level you'd expect on the PlayStation 2.

PSP games are more graphically rich--and often less kid-oriented--than many titles on the Nintendo DS.

Early on, the PSP was knocked for being little more than the "PS2 portable," because so many of its titles were simply ports of PlayStation 2 games. And, indeed, its hit list is dominated by many PlayStation franchise standbys, including Grand Theft Auto, SOCOM, Tekken, and Burnout. But many of these are phenomenal titles that have been designed for the PSP from the ground up. Genre strong suits include sports, racing, action, and shooter titles, but it's not all sweat and blood, either--plenty of quirky puzzle games (Lumines, Puzzle Quest, Loco Roco) are available, as well as a host of family-friendly favorites as well (Daxter, Ratchet and Clank).

It's also worth noting that many of the PSP games include an online multiplayer component. Some games offer ad hoc multiplayer (peer to peer, for playing against other PSP'ers in the same room), others offer Internet play, or both. Online gameplay is free, and--while the experience varies from title to title and is dependent on network speed--it can be just as fun and fulfilling as playing on a home console.

Multimedia and online features

The PSP is primarily a gaming device, but it's got some notable media functionality as well.

• Video output: The new PSP features an AV output jack (which doubles as a standard headphone connector). With the purchase of a special breakout cable (composite and component versions are available for about $20 apiece), you can display the PSP's audio and video on virtually any TV. But there are a few notable caveats--most notably, the maximum video resolution varies according to the content displayed. Video content from UMD discs (prerecorded movies) and Memory Stick (home-ripped videos) can be displayed at DVD-level 720x480 resolutions--though quality will vary depending upon how the compression of the video in question--but games are locked into the PSP's native 480x272 display. So, if your TV doesn't have a robust zoom function, you're stuck with a window-boxed experience for games. Another potentially bigger problem with games is that they don't seem to even work on TVs that can't handle progressive-scan (480p) output. So while nearly any HDTV should be fine (with the component cable), older televisions will be limited to displaying nongaming video output.
  
• Video playback: The PSP can play videos from a variety of sources. The easiest--and most ill-advised--is to buy prerecorded UMD video discs. (With an extremely limited selection, and the fact that the PSP is the only place you can watch them, UMD videos are--not surprisingly--pretty hard to find.) A better--albeit more involved--option is to copy your own videos from a computer onto a Memory Stick Duo card, and pop it in to the PSP. A variety of free and commercial software products can convert files to PSP-friendly formats and resolutions (MPEG4 or H.264-AVC, up to 720x480). Other content sources include TiVo Series2 (the TiVo To Go Desktop software can convert recorded shows for viewing on the PSP) and dedicated flash media recorders, such as the Neuros MPEG-4 Recorder 2 Plus and the SanDisk V-Mate, which can be preset to record TV shows in PSP-compatible formats straight away, with no PC needed.
• Audio playback: The PSP doubles as a superb music player, with the ability to play DRM-free MP3, WMA, WAV, AAC, and ATRAC3 files, along with support for album art. Shuffle and repeat modes are supported, along with a visualizer function.
• Photo display: The PSP can display JPEG, GIF, and TIFF photos stored on the MS Duo card--individually, or as a slideshow.
• PS3 "Remote Play": The PSP can log into a PlayStation 3 on a home network or via the Web, and stream any video, audio, or photos stored on the PS3. The PSP can also download and play some PlayStation Network game titles from the PS3 (mostly PlayStation 1 titles that have been rereleased specifically for that purpose).
• Web browsing: The PSP has a built-in Web browser, using the analog stick to control the cursor is nice, and any Wi-Fi connection is fair game (it can handle WEP and WPA encryption). And for a lot of people, it will be a better mobile Internet experience than they're getting on a phone. A separate RSS reader option is also available.
• Network update:The PSP has an upgradeable firmware, and Sony has been diligent about adding additional features, fixes, and updates every few months. The upgrade is as simple as choosing the option from the system menu.

Outside of North America, the PSP media options are even more robust: Japanese users have the option of a snap-on digital TV tuner for over-the-air broadcasts, while Europeans will soon have a video-on-demand service and VoIP communications. Likewise, Sony's international subsidiaries tout other PSP add-ons--a GPS device and a camera--that never quite seem to turn up stateside." -Copied and Edited based on http://reviews.cnet.com/sony-psp/?tag=prod.txt.1