Sony rumors: PSP-phone goes hybrid in July

According to Reuters latest Technology News

Sony Corp is considering developing a cellphone-game gear hybrid in a bid…

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Reuters is also reporting that Sony is setting up a team which shall start this Juli as fast as possible to design a “cellphone-game gear hybrid” device to compete with Apple‘s popular iPod and iPhone, which has become more and more interesting for Game Developer companies like Capcom Co Ltd and Square Enix Holdings.

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Otherwise, the story is light on details, and states that a Sony spokesperson declined to comment on the report. Although this is all unconfirmed by Sony themselves, Nikkei is generally a reliable source (they recently correctly reported on Wii Fit Plus and a new Wii Mario game before E3 started earlier this month).

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Will the Sony PSP-Phone [cellphone-game gear hybrid] team create a device which can compete with Apple’s iPod and iPhone to close the rising gap?

Will it batter the iPhone. Sony Ericsson was reported to have pitched a PSP phone to Sony a few months ago but was denied, while the recent Sony restructuring put former PlayStation boss Kaz Hirai in charge of new mobile products, another indicator of a PSP phone. It appears all is not well in joint venture Sony Ericsson, with the two camps now apparently turning on each other.

Includes fixes for latest version of the PSP firmware so you can create iPod/PSP compatible MPEG-4 files, including widescreen movies. All in a very simple, easy to understand Mac-friendly software program. Money wasted on this project could go into loss-leader pricing for PS3s. Seriously, a device like this would probably be as big a boondoggle as the N-Gage, though your UMD-less game distribution system would make things a little easier. Just remember what the N-Gage did to Nokia.