Coombs confirmed the 802.11 protocol compatibility of the PSP, mentioning that it will have the ability to talk peer-to-peer locally as well as through Client/Server via 802.11 hotspots.
Which means that PSP players will have the ability to challenge each other all over the world, wirelessly. The PSP will also have USB connectivity so that players can hook up peripherals such as digital cameras to the system. Coombs specifically mentioned that Sony is very interested in a GPS device for the handheld so that the system can recognize where it is in the world at all times.