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http://www.semiaccurate.com/2010/07/14/sonys-psp2-powered-nvidias-tegra-line/

This author has a very good track record of insider Nvidia news. He has been talking for months about how Nvidia's mobile/embedded chip, Tegra [also used in the Zune HD] has been delayed and is over power budget (which is hugely significant for mobile devices).

Hopefully Sony will change chip, because Nvidia's execution record for all its chips has been pretty bad over the last year.

Tegra has Geforce 6 level graphics, by the way. So I'd estimate between a quarter and half as powerful as a PS3 depending on downclocking.