The PSP Giga Pack will retail for US $299, and includes the PSP System, a 1GB Memory Stick PRO Duo, battery pack, AC adaptor, USB Cable, and an all-new PSP Stand.

The PSP Giga Pack will come pre-installed with the PSP Firmware 2.0, allowing users to take advantage of the PSP’s Wi-Fi capability to search for and download content from the Internet via Internet Access Points or “hot spots”.

Consumers will also be able to download videos, music and photos from the Internet or a USB-connected PC onto their memory sticks. Customers who have already bought a PSP Value Pack will be able to purchase the PSP 1GB Memory Stick PRO Duo separately.

Jack Tretton, Sony’s executive vice president of sales and marketing, had the following to say about the release of the PSP Giga Pack:

“As we approach our first holiday season with PSP, offering consumers a new value option in the Giga Pack demonstrates our commitment to allowing consumers [to] further control and customize their entertainment options.”

To date, Sony has sold more than 2.2 million PSP units in North America alone. There are currently over 45 games and 200 feature films available for the PSP on Universal Media Discs (UMD).

Images stored on the PSP will be viewable on a full screen using the television connected to the Xbox 360 console and MP3 files can be replayed through the Xbox 360 sound system.

PSP users can play games alone or against another PSP owner via wireless technology, watch full length movies from UMD discs or files stored on a memory stick, browse the internet and play music on their PSP console.

It is not yet clear whether PSP owners will be able play games or watch full length UMD movies on the big screen via the Xbox 360.

Microsoft has made no secret of its plans to position the Xbox 360 as the key to digital home entertainment. They have made an unprecedented move in allowing a Sony gaming console to connect to a Microsoft gaming console in any capacity.

Allowing access to photos and music from the PSP via the Xbox 360 is an effective way for Microsoft to attract PSP owners and encourage them to buy the Xbox 360 console.

Perhaps Microsoft will take this one step further and offer PSP users access to all their games, full length movies and even online gaming on the big screen via the Xbox 360.

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