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According to an IDC analyst in 2004, the PSP was the "first legitimate competitor to Nintendo's dominance in the handheld market". The SNK Neo Geo Pocket and Nokia's N-Gage also failed to cut into Nintendo's share. In January 1999, Sony had released the briefly successful PocketStation in Japan as its first foray into the handheld gaming market. In the 1990s, Nintendo had dominated the handheld market since launching its Game Boy in 1989, experiencing close competition only from Bandai's WonderSwan (1999–2003) in Japan and Sega's Game Gear (1990-2001). Several gaming websites were impressed with the handheld's computing capabilities, and looked forward to its potential as a gaming platform. CEO Ken Kutaragi called the device the " Walkman of the 21st century", a reference to the console's multimedia capabilities. Although samples were not presented, Sony released extensive technical details.
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Sony Computer Entertainment first announced development of the PlayStation Portable at a press conference preceding E3 2003.