Another Hand-held, Not a Rival?

Sony has announced that later this year it will be releasing their new portable gaming system codenamed NGP, short for next generation portable, in Japan.  This will be the successor to the prevoiusly popular Sony Playstation Portable, PSP. 
Not much has been said about the NGP however, there are only a few detailes that we currently know about it.  First, it will have a touch sensor built in and secondly that it will have dual analog thumb pads to simulate using a controller on a home console.  The last thing we know is that the NGP will not play UMD disks which is what's causing some fuss over in Japan.  The PSP has been very popular in Japan and the games that it plays are on the UMD disks that will no longer be compatible with the new NGP.  The NGP will use memory card cartridges similar to the Nintendo DS cartridges.  So what happens to that robust game library that PSP owners have collected over the PSP life span?  The developers over at Sony are looking into possible solution to that.  Perhaps having the games be downloadable on the Playstation network or just creating ports of some of the more popular PSP games for the NGP. 
Will the NGP be better than Nintendo's 3DS?  Many say that it will be better because the 3DS 3D gaming functionality is considered by many to just be a gimmick to attract buyers.  It may well be so, or might not but others also say that Nintendo has a greater advantage as it's being released much sooner than the NGP.  Currently Japan already had released the 3DS with the US being able to see it in their hands next month.  The NGP won't be released in Japan until the end of 2011 which means the US probably wont see it on their store shelves until 2012.  What does Sony have to say about this?  They want Nintendo to succeed because thay acknowledge that the 3DS and the NGP are directed at completely different audiences.  Also, both Sony and Nintendo probably realise that their true competition is in Apple.