Sony Corp took the wraps off its next generation portable gaming machine, PlayStation Vita, a touch-interface and motion-sensitive handheld that outdoes its workhorse PlayStation Portable and will go on sale before the winter holidays.

Company executives have called the device Sony's biggest product launch since the PlayStation 3 five years ago.

The device will allow gamers to be connected with one another over cellphone networks and Wi-Fi hotspots, and use GPS location-tracking technology.

In the US, Sony is partnering exclusively with AT&T Inc for cellphone service.

The device, available for USD 249 for its Wi-Fi-only version, was unveiled Monday at the Electronic Entertainment Expo, the video game industry's annual convention known as E3.

A version that will also have cellphone service will retail for USD 299, and buyers will have to subscribe to a cellular data plan.

The handheld has front and back cameras, a touchscreen in front, a touch pad on the back and two knob-like joysticks.

It will enable gamers to play against people using PlayStation 3 consoles over the Internet-based PlayStation Network, a system that was recently restored after being shut down due to a massive hacking attack.

Sony apologised again for the outage and said since the network was restored, activity is back to 90 per cent of the pre-attack level.

The hardware comes with an accelerometer, which means it will also react to being held at different angles and being moved through the air.