The unit we all know is actually the 7th generation of portable Sony console and the main rival was Nintendo DS. The following year, in 2005 it became available in the United States, Europa and other parts of the globe. The unit was developed and released in 2004 in Japan. It is the first handheld console made by Sony and it is one of the most popular, even today.
PSP stands for PlayStation Portable and it is precisely as the name tells you.