Newtypes (ニュータイプ) are people with heightened powers of precognition and exhibit various esper-like powers. Newtypes, unlike any other person, are considered the next evolutionary step for humanity living in space due to their physical inconsistency.
Sometimes people who aren't "awakened" as Newtypes are called the derogatory term, Oldtypes (オールドタイプ). Artificially engineered Newtypes are named Cyber-Newtypes (人工ニュータイプ, Jinko Newtype) or Artificial Newtypes (強化人間, Kyouka Ningen).
Background Info[]
Newtypes, with psychic connections and telepathic communication, can sense danger and experience mental tension, but are not fully trusted by humanity. Char Aznable exploits this mistrust to incite rebellion.
Mission Mode[]
In Dynasty Warriors: Gundam 2, the player can choose to become a Cyber-Newtype with any unawakened character. After they finish their characters' story missions, they'll be contacted by Nanai. She has an interest in the player's character and will offer them a test to complete. In reality, it's an experiment to see if the pilot is a worthy Cyber-Newtype. If they complete her request, they'll evolve into a Cyber-Newtype when they accept her second offer.
The player can become a Newtype by leveling up their characters in Dynasty Warriors: Gundam 3, where Amuro tests their pilot skills. This unlocks Quess, Gyunei, and Amuro's Zeta version, allowing pilots to use Mobile Suits with funnels.