It’s hard not to stare.

As you struggle to avert your eyes, its difficult not to be filled with awe at the advent of new technology, slack-jawed with amazement at the fact that something so incredible even exists. In the words of one first-time observer, “It hurts.”

What device could possibly inspire such reverence? Such shock and awe?

The Sony PSP. With its release, Sony has dramatically altered the video-game landscape.

What does this mean for the future of gaming? Is Nintendo doomed? And if this is where we’re at now, where do we go next?

In this week’s Nerd Alert, Ryan and Zach discuss the current state of affairs for gaming and what to expect in the future.

Ryan:

I didn’t want to admit that the PSP was revolutionary. Honestly. But quite frankly, when I held it in my hands there was no denying it. This handheld shocked me to no end and could quite possibly be the future of gaming.

The prospect of having what is for all practical purposes a console in a handheld would’ve been thought ludicrous only a few years ago. And yet, here I sit staring at that very thing. The PSP will undoubtedly change the outlook of gaming in one way or another. Whether it means that game systems will be geared toward the now mobile gamers or not is unknown, but it’s clear that something has forever changed.

Zach:

I generally agree, and I think the PSP as a piece of hardware is an undeniable success. However, it’s just the beginning of what I think will eventually be a fundamental revolution in what we consider to be a “gadget.”

Digital convergence has been talked about for years now — cameras with cell phones, cell phones with MP3 players, washing machines with Internet access — it’s all here already. But never before has so much been shoved into so little, and never has it been done as well.

Video games are merely one application of this device — look for future expansions to add camera functionality as well, and most likely streaming video and audio to come over the Wi-Fi straight to your PSP. Even now you can transfer MP4 files (compressed video files) to a Memory Stick Pro Duo to play in your PSP, and with the widespread success of technologies such as TiVo, it won’t be long before you can take all your favorite television shows with you — anywhere.

Ryan:

So we agree that the PSP is amazing, there is no arguing that. Suddenly, Nintendo’s outlook is becoming grim. While the Nintendo DS was fun and cool a couple of months ago, it is pathetic when compared to the PSP. Similar to SEGA’s ill-fated Dreamcast, the DS came storming out of the gates, but when its competitors surfaced it suddenly became little more than a joke.

Not only are the graphics worlds worse, but the DS is only a gaming machine — nothing more. While it does have Wi-Fi capabilities, it fails to offer the same level of technological might by lacking video and music playback.

While this may seem like a great idea to Nintendo honchos, it will only serve to bite them in the ass yet again. What people want, whether Nintendo will admit it or not, is one piece of technology that handles all of their digital needs. Sony and Microsoft both recognize that, but Nintendo refuses to admit they are wrong. What else is new?

Zach:

No doubt, Nintendo is going to find itself in a hard place — but don’t count them out just yet. The DS, while seriously lacking in its launch titles, is going to have a much stronger year buoyed by triple-A titles such as “Metroid Hunters,” a new Zelda Four Swords adventure and the latest Castlevania title. Their problem is one of marketing — they just aren’t very good at it.

We haven’t, however, mentioned the other major player in this latest round of the video-game war — Microsoft. By choosing to stay out of the handheld market (for now), Microsoft has obviously chosen a more conservative, traditional path. However, with rumors looking good that the Xbox 2 (or whatever its finally called) will have a removable hard drive, capable of MP3 and possibly video playback as well, Microsoft may be targeting its more traditional nemesis’ dominance of the “gadget” market — Apple and it’s uber-successful iPod.

Ultimately, the games are what will decide the winners and losers of these battles to come, and with a new Legend of Zelda title coming out later this year for GameCube, Nintendo isn’t going away any time soon. Let there be no doubt — a Legend of Zelda title, to any traditional video game fan or hardcore gamer, is a system seller all by itself. No developer, not EA, not SEGA, not Ubisoft — no one can match Nintendo’s skills at creating memorable gaming experiences. No doubt that truth will hold some weight in the future.

Clearly, the future of video games has yet to be written. With an ever-growing population ready to accept video games as a fully legitimate form of entertainment, we have truly just seen the beginning of what experiences these digital artists will create for the world to enjoy. And that future is getting brighter all the time.