Sony threw the gaming industry a curve Wednesday, announcing plans to launch a portable gaming system that will compete directly with Nintendo's GameBoy Advance.

Dubbed the PSP, the system is scheduled to be released in the 2004 holiday season. The company did not announce any pricing details.

The PSP will utilize a new proprietary storage disk, offer a backlit screen, and have a rechargeable battery. It will measure approximately 4.5 inches and offer a widescreen viewing format.

Sony computer President and CEO Ken Kutaragi called the device "the Walkman of the 21st century."

Nintendo has long been the King of the Hill of handheld gaming, but analysts and industry insiders have wondered when Sony (SNE: Research, Estimates) would try to move in. Ten years ago Sony launched the Playstation, which eventually gained a dominant position over the video game sector.