Sony is considering building a mobile phone of the PlayStation Portable. It would be the PSP combined with a Sony Ericsson phone. A team may be put together for this project starting as early as a month from now. This type of device won’t be available for at least a year from now.
This would be an interesting way to challenge Apple considering that the iPhone company makes substantial revenue through game applications sold on iTunes. Game publishing companies Electronic Arts, SEGA, Capcom, etc. are all very active in creating games for the iPhone and Sony PSP. Aside from selling games on the PlayStation Store, Sony will be selling TV shows and movies.
As of this past February, Sony announced to have over 20 million users on the PlayStation Network and sold above 50 million PSP devices.