I bought a Sony PlayStation Portable at GameStop for a decent price for what its worth. I like the newest version of it because it has Skype exclusively on the newest version only. Skype is a program where you can talk to anybody IN THE WORLD for free, you just buy a Skype Headset for it which is $29.99+tax and you are all set. I specifically bought the PSP for skype really, because I met this girl in the summertime from a different country, and she had Skype on her laptop so it was a good feature for the PSP. But the PSP has awesome graphics, beautiful screen, and the sound quality is okay.
You can store all of your music on there, watch some videos on it or movies, pictures, you can go on the internet (obviously because Skype runs through the internet) and you just get internet access by using Wi-Fi. This is the best Handheld system I have ever owned, and it definetly beats the Nintendo DS. I would recommend to anybody to get this Portable Gaming System for an awesome gift for their children 8yrs.+ older, they will love it.