Because of the delay, many analysts now expect Sony to have weakened sales of the console, and overall revenue decline.
For controls, the updated handheld adds dual micro-analog sticks, giving gamers a feature they begged for on the original PSP.
The device has a massive 5-inch multi-touch OLED screen with 960×544 resolution, a multi-touch panel on the back and will run on a quad-core ARM cortex processor.
Sony has added tilt-sensitive SIXAXIS controls, standard and front-side cameras, GPS, an electric compass, Wi-Fi and 3G support, and access to Android gaming.
For 3G, AT&T is the exclusive carrier.
Prices $250 for Wi-Fi-only, $300 for 3G. The rival Nintendo 3DS just saw a price cut to $170 from $250, just months after release.