Sony unveiled it's "Next Generation Portable" (NGP) device aka The PlayStation Portable 2 (PSP2). A lot of acronyms I know, but blame Sony on that.
The PSP2 features a high-resolution, touch-sensitive OLED screen that's larger than the original PSP screen, tilt-sensitive SIXAXIS controls, dual analog sticks, front and back-facing cameras, and a touch sensitive back panel. It is supposedly (slightly proven) as powerful as a PlayStation 3.
For more in-depth information, check out Kotaku