The Sony NGP sounds like it will be a very cool portable game system. Sony is hoping that the NGP will be able to compete with the Nintendo 3DS in sales the way the original PSP was never able to compete with the Nintendo DS. Whether or not the competition will be what Sony hopes for remains to be seen. So far, we really don't know all the official specs for the NGP. We do know a few things though like the console is supposed to come in 3G or WiFi versions.
A few other specs were rumored, but haven't been officially confirmed at this point. Those unconfirmed specs included that the NGP would pack in 512MB of RAM and 16GB of internal storage. Another rumor has turned up that claims those rumored specs have been changed now. The new rumor claims that in order to cut production costs and allow the NGP to compete with the 3DS on a price basis, those two key specs have been changed.
The RAM has reportedly been changed from 512MB to 256MB and the internal storage as been removed altogether. Rather than 16GB inside the machine, it will use memory cards as the current PSP does for storage. The big benefit according to the rumor is that those cuts will let the NGP sell for the same $250 that the 3DS goes for. As long as the chopped specs don’t impact performance significantly, lowering the price is the best thing Sony could do. That is assuming this rumor is accurate at all.