A rebuilt Playstation, the PSone is 100% compatible with all original PS games but is a third of the size and is aimed at "The mobile generation".
Despite this the console is not really portable, Sony are planning to release a tiny LCD screen for on the road gaming but the system has no battery compartment and has to be plugged in to work, even if a third party manufacturer were to release a battery pack plugin the PSone's 2 speed cd rom drive would have difficulty coping in bumpy conditions (eg. in a train or car).
Sony have also had to cut corners to keep the consoles size down; the parralell port has been removed, so no PS linkup games, Gameshark, reset button, or PSXAMP support.