Sony has unveiled its new PlayStation Portable (PSP) 2 gaming console with 3G mobile connectivity and Wi-Fi features.

Codenamed NGP, the portable, touchscreen gadget allows users to download games and other content, the company said.

It features a five-inch organic light-emitting diode (OLED) touchscreen, a GPS receiver, a motion sensor and a rear panel control touchpad, besides other navigation buttons and a joystick.

With the release of NGP, the company is reportedly trying to beat competition from Apple’s iPhone and iPad, which are increasingly eating into the portable gaming market with downloadable games.

Sony Computer Entertainment president and group chief executive Kazuo Hirai said the gadget will be up for sale during the 2011 holiday shopping season. He did not specify the price.

The Japanese electronics maker also unveiled the PlayStation Suite, an application for Google’s Android Market that is expected to impart better quality to the company’s older PlayStation consoles.