Sony Computer Entertainment America announced today that the PSP will launch on March 24 for $249.99--approximately $50 more than in Japan.

The hardware bundle, called the PSP Value Pack, will include a 32 MB Memory Stick Duo, headphones with remote control, battery pack, AC adaptor, soft case, cleaning cloth, movie/music/game video sampler UMD disc including multiple non-interactive game demos, and for the first one million PSP Value Packs shipped, a special UMD video release of the feature film Spider-Man 2 from Sony Pictures Entertainment (which the Japanese Value Pack didn't have)

The company plans to make one million units for sale in the North American market by the close of its fiscal year, ending March 31, 2005. SCE plans to ship 3 million units worldwide by the end of march, and already shipped 800,000 in Japan. The PSP in Japan sold 200,000 on its December 12, 2004 launch day, and continues to sell well there, recently outperforming the DS in week-to-week sales according to Japanese marketing group Media Create.

"PSP will evolve and elevate portable entertainment, giving users the freedom to play full 3D games, watch movies, listen to music and connect wirelessly on their terms, their time and their place," said Kaz Hirai, president and chief executive officer, Sony Computer Entertainment America Inc. "More than ever, today's consumer demands access to entertainment outside the home without compromising quality. With more than 100 PSP game titles currently in development worldwide, and the ability to download and listen to digital music and view feature films with breathtaking screen quality, PSP lets users control their entertainment options, all in one package."

The PSP has a large 4.3-inch, 16:9 wide screen TFT LCD that displays 16.77 million colors on a 480 x 272 resolution screen. The handheld platform has built-in stereo speakers, exterior headphone connector, a USB 2.0 connector, and 802.11b (Wi-Fi) wireless LAN, enabling users to connect to the Internet and play online via a wireless network. Up to 16 PSPs in the vicinity can also be connected to each other in ad-hoc mode as well.

The proprietary UMD disc holds 1.8GB of data--3 times the amount stored in CD-ROMS--and will be used for both video games and movie playback.

The $50 price increase from the Japanese version is likely due to Sony wanting to reduce the loss incurred with each unit sold, and also to appeal to the same market segment as Apple's iPod (has the same price as the iPod Mini). Another factor is Nintendo's strong grip in the handheld market in Japan, with the GBA and GBA SP having a more broad appeal than in the states.