Sony introduced a smaller and lighter PlayStation Portable game machine in an attempt to capture the attention of video game industry and market. Nintendo, meanwhile, announced an upgrade to its Wii Fit exercise game.

On the second day of E3 video games conference, Sony and Nintendo vied for the limelight, a day after Microsoft introduced ‘Natal’. Nintendo said it sold more than 15m units of its Wii Fit fitness game. Sony also aims to sell 15m units of the PSP in this financial year to catch with its competitors and also to expand its reach in mobile games market.

Sony’s PSP Go is designed to download games, movies and music. The PSP Go comes with a slide-in controller and a small screen. It includes wireless capabilities and has 16GB internal flash memory. It is also integrated with the Bluetooth option and allows users to download music and movies directly from the PlayStation Network.

The gaming device will go on sale October 1 in North America and Europe for about $249. It will also be available in Japan on November 1 for $277.

Kaz Harai, chairman and group chief executive officer of Sony Computer Entertainment, said at Sony’s E3 press conference: PSP Go represents a new evolution of PSP, specifically designed for the digital lifestyle.