The Plasma Pistol, like the Plasma Rifle, fires directed energy bolts instead of traditional projectile ammunition. This Covenant weapon is capable of quickly firing low-powered shots, or of charging a single high-powered blast which can rapidly deplete energy shielding. This high powered shot makes the plasma pistol a formidable strategic weapon if used in concert with other infantry weapons.
NOTE: The Plasma pistol got a series of small tweaks that added up to quite a different weapon in the interim between Halo 1 and Halo 2. Will history repeat itself? As one of a very small number of weapons with target-seeking capability (the others being the Needler and the Rocket Launcher) there is an added characteristic to balance; not just the weapon's range, strength, and rate of fire, but also to what degree the projectile will adjust its path to follow a target.
Its ability to completely drop an enemy shield made it indispensible during Halo 2's campaign, and also led to the controversial "noob combo" technique in Halo 2 multiplayer. That aspect is retained, it seems, although it is perhaps worth noting the use of the word "rapidly" above instead of "completely".