Nvidia have just announced a new product at CES 2013 which will inevitably be competing with the Nintendo 3DS and the PS Vita. It's a new handheld gaming system which they're calling Project Shield.
Project Shield is basically an XBOX looking controller with a 5-inch screen attached to it. It runs on a Tegra 4 processor, capable of playing 4K resolution video over HDMI, a battery which lets you play around 5-10 hours of gameplay or play 24 hours of HD video. The screen itself is a 720p multitouch display which has a PPI of 294, close to print quality. It has a MicroSD card slot for storage expansion too.
It runs on Android and includes access to the Play Store. So you can also technically use it as an Android tablet, browsing the internet, checking your email and posting stuff to Facebook and Twitter.
No word on how much the device will be but Nvidia are saying that it'll be available in the US in the second quarter of this year. I'm guessing they're going to trial the product first and then expand to other countries if successful.
This has undoubtedly come because of the success of some Kickstarter projects such as OUYA and others. With these projects receiving millions in funding, Nvidia maybe thinks it can take advantage of this new and emerging Android gaming market.