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Sony to Take on iPhone?

Reuters news is reporting that Sony Corporation is looking into developing a cell phone that incorporates technology from the PSP gaming system.  The hope is that this all-in-one device will be able to take on Apple’s iPhone head-on. Nikkei newspaper (Tokyo) broke the story early yesterday morning.  The details of the report are fuzzy, to say the least; but there were some specifics that give credence to the report:

Sony plans to set up a project team as early as July to develop a new product that combines functions of its portable game player and Sony Ericsson’s mobile phones…

Sony naturally declined to comment.

It’s worth noting that a number of developers have met with great success in developing games for Apple’s user-friendly device.  The iPhone’s on-the-go download capabilities and massive market penetration allow consumers to purchase and play games on a whim, and shorter distribution channels result in lower costs than traditional disc-based media.  While new PSP games are typically $30-$40, iPhone/iPod Touch games rarely venture over the $10 mark.

There’s no word yet on what this new device will look like, but I’m betting Sony’s move toward the PSP Go! isn’t a coincidence at this point.  Back in 2006 the company unveiled an internet device called the Mylo that looks eerily similar to the new PSP hardware iteration.  I’m betting that the Mylo will be brought back into production (under a new name) with full 3G celluar network  support, and will contain hardware elements from the PSP Go!

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