Verizon Wireless (NYSE: VZ) and Motorola (NYSE: MOT) have taken the wraps off Droid, its first Android phone. The handset, which runs on Android 2.0, the latest version of Google’s operating system for mobile phones, goes on sale to Verizon customers on November 6 and is priced at $199 (after a $100 rebate) on a two-year contract.

The phone sports a 3.7 inch display and includes Wi-Fi, Bluetooth, a 5.0 megapixel camera, 16 GB memory, a DVD- quality video recorder, a slide-out keyboard, and comes loaded with a number of Google (NSDQ: GOOG) applications, including Gmail, Google Maps, Android Market and YouTube to name a few. It’s also the first phone to include Google Maps Navigation, a product still in Beta, which provides turn-by-turn voice guidance as part of Google Maps. Verizon’s Visual Voice Mail is also included.

Much is at stake for both Verizon and Motorola regarding the Droid. Motorola desperately needs the Droid to succeed as it stages its comeback. Verizon, which lost out on the iPhone to AT&T (NYSE: T), has been seeking a device that can bring in the sort of subscriber numbers the iPhone has been able to drive to its rival.