The Sony Playstation Portable (PSP) will connect and interface with the Xbox 360 console via USB, allowing content stored on the PSP to be accessible via the Xbox 360 browser (the “Dashboard”).

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.