Sony uploaded a few videos today showing off some of the games from the newly detailed NGP lineup. In addition to three game-centric videos, there's also a featurette about Sony's history creating augmented reality games, which ends with a brief overview of the AR features for the NGP.
That would have been impressive had I not seen nVidia's quad core Kal-El tech demos. They ported Lost Planet 2 for PC to android and had the game running. Kal-El will end up on Android phones and tablets, Windows 8 tablets and netbooks, and WP7 devices, and after that we'll end up getting six core and eight core products.
I don't have a single doubt in my mind that the future of portable gaming is on tablets and smartphones. When google implements a standardized controller setup (and they will, its just a matter of time) then there will likely be accessories you can plug your phone into for traditional game controls.