Sony Computer Entertainment President and Group CEO Kaz Hirai announced the successor to the PSP will feature: dual analogs sticks, 5-inch OLED display (960x544 resolution/4x the original PSP), GPS, front and rear touchpads, electronic compass on 3 axes, and front and rear cameras [via PlayStation Blog].

The unit is modeled much like the original PSP; however, there is a second analog stick under the system's iconic face buttons. The sticks look like smaller versions of analog sticks and not the thumb-sore nubs we're used to from the original system.

"There will be physical media for games, a New Game Media, a flash memory-based card," Hirai told the crowd. The second-generation of the PSP will also incorporate 3G networks and Wi-Fi. A price for the handheld was not revealed. For more on the Sony NGP, make sure to check out our other coverage from the event.

[Update: 2:02am] Sony has sent over a handful of images of the NGP (Next Generation Portable). Specs have been added after the break.

HARDWARE SPECS
• CPU: ARM Cortex-A9 core (4 core)
• GPU: SGX543MP4+
• External Dimensions: Approx. 182.0 x 18.6 x 83.5mm (width x height x depth) (tentative, excludes largest projection)
• Screen (Touch screen) 5 inches (16:9), 960 x 544, Approx. 16 million colors, OLED
• Multi touch screen (capacitive type)
• Rear touch pad Multi touch pad (capacitive type)
• Cameras: Front camera, Rear camera
• Sound: Built-in stereo speakers
• Built-in microphone
• Sensors: Six-axis motion sensing system (three-axis gyroscope, three-axis accelerometer), Three-axis electronic compass
• Location: Built-in GPS
• Wi-Fi location service support

KEYS & SWITCHES
• PS button
• Power button
• Directional buttons (Up/Down/Right/Left)
• Action buttons (Triangle, Circle, Cross, Square)
• Shoulder buttons (Right/Left)
• Right stick, Left stick
• START button, SELECT button
• Volume buttons (+/-)
• Wireless communications: Mobile network connectivity (3G)
• IEEE 802.11b/g/n (n = 1x1)(Wi-Fi) (Infrastructure mode/Ad-hoc mode)
• Bluetooth 2.1+EDR (A2DP/AVRCP/HSP

MEDIA
NGP adopts a new game medium, a small flash memory based card, dedicated for NGP software titles. Taking advantage of the flash memory feature, this innovative card can store the full software titles plus add-on game content or the game save data directly on to the card. By adopting flash memory based card, SCE will be able to provide game cards with higher capacity in the future, allowing developers to store more game data to deliver rich and immersive games. NGP will also come equipped with two cameras on its front and rear, as well as three motion sensors, gyroscope, accelerometer and electronic compass, all of which are designed to enable users to enjoy the world of entertainment that is linked with real life experiences.

LIVEAREA
Every game title for NGP will be provided with a space called "LiveArea" where users can share the fun and excitement with other players. Users will have access to the latest information of games provided from SCE and 3rd party developers and publishers through PlayStation Network. Additionally, NGP users will be able to view an "Activity" log that is constantly updated with accomplishments from users who are playing the same game, which in turn can trigger active real-time communication among users.

NEAR
SCE will also provide location-based services on NGP as part of the basic features utilizing PlayStation Network. The new application called "Near," developed specifically for this service and the network, will be pre-installed in the system to let users find out what their friends in the vicinity are playing now or what they were playing recently. Users can meet their friends and new players virtually, regardless of what games they are playing, simply by sharing their game information across different dimensions of time and distance.

Information via press release from Sony Computer Entertainment