A new mobility GPU from NVIDIA may be a step closer to the future now.

The GoForce 5500 can turn a cellphone display into a 1024×768 resolution screen while also boasting capability of 10-megapixel still images. Such wow-inducing capabilities have the power to turn a mobile phone into a PSP, at least for technical specifications.

Specifically, NVIDIA says that GoForce 5500 sports playback capability of H.264, WMV9 and MPEG4 in real time at a resolution approximating that of native DVDs. Those facts and figures are astounding in terms of existing technologies. Whether the consumer will want a 1024×768 screen that is still the size of two thumbs remains to be seen.

The GoForce 5500 will begin appearing in mobile devices later this year.