Digital Entertainment: Newtech

Nintendo and Sony appear set to square off in a handheld videogame war this holiday season, as each rolls out a new device.

Nintendo DS hits U.S. shelves Nov. 21, while Sony's PlayStation Portable goes on sale Dec. 12 in Japan. PSP's U.S. launch is set for late March 2005, making it a late entry to the battle for U.S. market share.

Nintendo already dominates the handheld category with its Game Boy franchise. Strengthening its position is an aggressive marketing campaign including TV and print ads using the tag line "Touching Is Good."

DS, with a suggested retail price of $150, will feature a touch screen, built-in chat function, wireless communication and voice recognition. PSP will sell for about 19,500 yen ($185) and will run on Sony's new Universal Media Disk format, which can play music and movies.

Figuring the field can use a third player, Jacksonville, Fla.-based Tiger Telematics has launched Gizmondo. The device, which is already available in the United Kingdom, is expected to beat the PSP to the States. Gizmondo features multimedia messaging, MP4 movie and MP3 music playback, a digital camera, global positioning system and Bluetooth.