While news of the device was leaked days before E3, Sony officially announced the existence of a new PSP at its press conference on Tuesday.

The latest iteration, dubbed the PSP Go, will do away with the UMD slot, opting instead for complete digital distribution. The device is much smaller and lighter than the current PSP, and the screen slides up to reveal the buttons.

The PSP Go will contain 16 GB of built-in flash memory, but current PSP owners need not fear adopting the new technology. Sony has stated that it will offer a good will program to let players transfer their current UMD games onto the PSP Go.

Despite the  program, in the works, the new handheld is not going to replace the PSP, but, like the DSi, sell side-by-side with the current handheld on the market.

Perhaps the most off-putting aspect of the handheld is the price. The PSP Go will sell for $250, which is how much a Wii costs. While this is the same price  as the PSP when it first launched in 2004, the lack of PSP Go-specific games (again, like the DSi) might make this a hard sell.

The PSP Go will launch in North America and Europe in October, and in Japan in November.